Understanding Forex Market Hours and Sessions

The Complete Guide to Forex Market Hours

The forex market operates 24 hours a day, five days a week. Understanding market sessions is crucial for timing your trades effectively.

Major Trading Sessions

#### Sydney Session (Asian Session Start)

• **Time**: 22:00 - 07:00 GMT
• **Characteristics**: Lower volatility, good for AUD/USD, NZD/USD
• **Best pairs**: AUD crosses, NZD crosses

#### Tokyo Session (Main Asian Session)

• **Time**: 00:00 - 09:00 GMT
• **Characteristics**: Moderate volatility, JPY pairs active
• **Best pairs**: USD/JPY, EUR/JPY, AUD/JPY

#### London Session (European Session)

• **Time**: 08:00 - 17:00 GMT
• **Characteristics**: Highest volatility, most liquid
• **Best pairs**: EUR/USD, GBP/USD, EUR/GBP

#### New York Session (American Session)

• **Time**: 13:00 - 22:00 GMT
• **Characteristics**: High volatility, USD pairs dominant
• **Best pairs**: Major USD pairs, USD/CAD

Session Overlaps

#### London-Tokyo Overlap (08:00 - 09:00 GMT)

• Limited overlap
• Good for EUR/JPY, GBP/JPY

#### London-New York Overlap (13:00 - 17:00 GMT)

• **Highest liquidity and volatility**
• Best time for day trading
• All major pairs active

Best Times to Trade

1. Most Volatile: London-NY overlap (13:00-17:00 GMT)

2. Trending Markets: London open (08:00-10:00 GMT)

3. Range Trading: Asian session (00:00-08:00 GMT)

Currency Pair Activity by Session

| Pair | Best Session | Average Pip Range |

|------|-------------|------------------|

| EUR/USD | London/NY Overlap | 80-120 |

| GBP/USD | London | 100-150 |

| USD/JPY | Tokyo/London | 60-80 |

| AUD/USD | Sydney/Tokyo | 60-80 |

Trading Tips by Session

#### Asian Session Strategy

• Focus on range trading
• Watch for breakouts near session end
• Lower leverage due to thin liquidity

#### European Session Strategy

• Trend following works well
• News trading opportunities
• Higher volatility requires wider stops

#### US Session Strategy

• Momentum trading effective
• Watch for reversals at session end
• Economic data impacts significant

Weekend Gaps

Markets close Friday 22:00 GMT and reopen Sunday 22:00 GMT. Weekend gaps occur due to:

• News events over weekend
• Position adjustments
• Market sentiment changes

Conclusion

Timing is crucial in forex trading. Align your strategy with appropriate market sessions for optimal results. The London-New York overlap offers the best opportunities for most traders.

---

*This article was originally published on GoFX.com. The content has been adapted for our platform.*