Around the Clock: Navigating the Global Forex Trading Sessions

Forex trading sessions happen around the globe, and each market brings different possibilities.

By Andrew Moran

Edited by Dragan Stevanovic

Published May 19, 2024.

a globe sitting on top of a pile of money

Theoretically, you could be trading on the forex market 24 hours every workday by knowing the opening and closing hours for major global forex trading sessions. Whether you're a high-activity trader or a more conservative one, the time slots let you tweak your approach to better suit your trading goals—and organize your trading routine.
Note: Fortrade offers the ability to trade the price changes of instruments with CFDs and NOT to buy/sell ownership of instruments themselves. All the information in this blog is purely educational and should NOT be considered advice.
﻿
The Structure of Forex Trading SessionsThe four major forex trading sessions are the  Sydney session, the Tokyo session, the London session, and the New York session. 
The Tokyo and Sydney session are sometimes grouped together into what is known as the Asian session.
Each location's opening and closing hours are based on their local business hours, but in most cases, trading begins between 7 a.m. and 9 a.m. local time. 
The trading activity ceases only on weekends, Christmas Day, and New Year, and nobody trades 24/7.
Knowing the times of different trading sessions means you could trade 24 hours a day—or whenever suits you during workdays. More importantly, the sessions' overlap allows you to compare currency pairs and observe trends in different markets, in real time.
Different sessions also come with varying liquidity. Taking all this into account, it would be possible to adjust the trading approach, lower transaction costs, and pick trading sessions that align best with your goals.
The opening and closing times for these four locations in local time are:
Sydney (Australian Eastern Time)
Opens: 7:00 a.m.
Closes: 4:00 p.m.
Tokyo (Japan Standard Time)
Opens: 9:00 a.m.
Closes: 6:00 p.m.
London (Greenwich Mean Time)
Opens: 8:00 a.m.
Closes: 5:00 p.m.
New York (Eastern Time)
Opens: 8:00 a.m.
Closes: 5:00 p.m.
The currencies most traded in these sessions are EUR/USD, GBP/USD, USD/JPY, and USD/CHF.
These are the most actively traded currency pairs in the world. Other notable pairings include the USD/CAD, AUD/USD, and NZD/USD.
Following the movement of global forex trading sessions is vital for traders because forex markets can be volatile at different times of the day.
﻿
Considerations for Trading in Different SessionsAsian MarketThe Asian market is considered to have thin liquidity, and the commonly traded currency pairs typically trade with wide spreads. 
Traders in the Asian markets often opt for the early hours when economic news releases in these regions are usually scheduled.
The major currencies in the Asian session include the Japanese yen, the Australian dollar, and the New Zealand dollar.
LondonIn contrast, the London session has massive liquidity and high volatility. 
The major currency pairs during this session include the euro and the British pound.
These currencies tend to make their most significant price moves during the London session when price advances and reversals are more likely to happen. The major currency pairs are traded with thin spreads in the London market. 
New YorkThe New York session is also highly active during the early hours as it overlaps with the London session. 
The New York market is primarily driven by the USD, which is also the most traded currency there. 
The market is highly liquid and volatile in the early hours, and the major currency pairs have thin spreads. The volatility and liquidity in the New York market typically decrease during the latter half of the session.
» If you're just starting out with trading, here are 9 basic forex terms you should know.
Different Approaches Across SessionsGap TradingThe opening session is often the most volatile. Traders tend to use it to conclude gap trading. 
During this time window, traders potentially profit from the price gaps between the closing prices from the day before and the opening price on the current day. 
The closing session can also be volatile. Traders often use the closing price reversal strategy and observe price reversal indicators before markets close. 
Trading during overlapping sessions is also a potentially good way to capitalize on price movements. The movements are a result of the economic data being simultaneously released on two different trading markets.
ScalpingTraders generally use between one and 15 minutes to scalp currency pairs. The highest level of volume and liquidity usually occurs early in London and during mid-day in New York, so these could be times for scalping in these markets.
Swing TradingAs far as swing trading is concerned, this approach largely depends on the market. Most swing traders do not dabble with swing trading in forex. The important thing is to adjust your risk based on the dynamics of each session.
» Need more information? Discover how to use an economic calendar for better trading.
Early Bird or Multizone Approach?Different global forex trading sessions come with different levels of liquidity and spreads.
To potentially capitalize on these markets, first you need get acquainted with the markets themselves and the accompanying economic data sources. Only when you're acquainted with the market, it does make sense to do proper research and due diligence on the instruments themselves.
﻿