Lesson 1: Forex Trading Sessions: Market Hours, Overlaps & Best Times

The foreign exchange market operates around the clock for five trading days each week and remains the largest financial market globally. According to the Bank for International Settlements (BIS), average daily forex turnover reached approximately US$9.6 trillion in April 2025, highlighting the scale and liquidity available across global trading sessions. 

This makes forex the world's largest financial market by daily trading volume. Although trading is available almost continuously, market conditions are not the same throughout the day. Liquidity, volatility, trading volume, and spread costs can vary significantly depending on which financial centre is active. 

A clear understanding of forex trading sessions allows traders to identify periods when particular currency pairs experience higher market activity, monitor the timing of significant economic releases, and assess conditions that may present trading opportunities consistent with their strategy. 

In this guide, our market specialists explain the four major forex sessions, their operating hours in both UTC and South African Standard Time (SAST), the key overlap periods, and the factors that influence the best time to trade. 

Trading leveraged products carries substantial risk. Market volatility can increase rapidly during major trading sessions and economic releases, making risk management essential. 

What Are Forex Trading Sessions? 

Forex trading sessions refer to the periods when the world's major financial centers are actively conducting business. Unlike stock markets, which operate through centralized exchanges with fixed hours, the forex market is decentralized and functions through a global network of banks, institutions, brokers, corporations, and retail traders. 

The forex market typically opens on Sunday at approximately 17:00 Eastern Time as trading begins in the Asia-Pacific region. It remains active until approximately 17:00 Eastern Time on Friday, when trading concludes in New York. 

Because the market follows the global business day, trading activity shifts between major financial hubs. As one center closes, another takes over, creating continuous trading coverage throughout the week. 

A trading session matters because liquidity and participation tend to peak when financial institutions within a specific region are active. This often results in stronger price movements, tighter spreads, and increased trading opportunities in currencies linked to that region. 

The Four Forex Sessions 

The global forex market operates across four major financial centers, each with its own trading characteristics and currency-pair activity. 

Note: Session times may shift during Daylight Saving Time periods. 

Sydney Session 

The Sydney session marks the start of the global forex trading day. Trading activity is generally lighter than during the major European and North American sessions, although market participation can increase when significant economic data is released from Australia or New Zealand. 

Currency pairs involving the Australian and New Zealand dollars typically record the highest levels of activity during this period. Commonly traded pairs include AUD/USD, AUD/JPY, NZD/USD, and AUD/NZD. 

Many traders use the Sydney session to assess market sentiment following the weekend open and to identify early price movements that may influence trading later in the day. 

Tokyo Session 

The Tokyo session is the first major trading session and represents the primary source of liquidity in the Asian market. Although volatility often remains lower than during the London and New York sessions, trading activity generally increases as institutional participation from Japan and other Asian financial centres enters the market. 

Currency pairs involving the Japanese yen typically experience the most significant price movement during this period. Popular examples include USD/JPY, EUR/JPY, GBP/JPY, and AUD/JPY. 

The Tokyo session frequently establishes important support and resistance levels that traders monitor throughout the rest of the trading day. Traders seeking a more detailed breakdown can explore our dedicated guide to the Tokyo trading session. 

London Session 

The London session is widely regarded as the most influential period in global forex trading. London's position as the world's leading foreign exchange centre is supported by data from the Bank of England. According to the latest UK results from the BIS Triennial Survey, the United Kingdom accounted for approximately 37.8% of global forex turnover in April 2025, maintaining its position as the largest center for foreign exchange trading worldwide. 

The London session runs from 08:00 to 17:00 UTC, equivalent to approximately 10:00 to 19:00 SAST during standard periods. 

Liquidity increases significantly when London opens, leading to stronger price movement across major currency pairs. European economic releases, central bank commentary, and institutional order flow can all contribute to heightened market activity. 

Major currency pairs such as EUR/USD, GBP/USD, EUR/GBP, and USD/CHF often see increased trading volume during this period. Economic announcements released between approximately 07:00 and 10:00 UTC frequently create notable volatility. For a deeper analysis, see our complete guide to the London trading session. 

New York Session 

The New York session begins at 13:00 UTC and closes at 22:00 UTC, corresponding to approximately 15:00 to 00:00 SAST during standard periods. As the second-largest forex trading center globally, New York plays a major role in determining daily market direction. US economic data releases, employment reports, inflation figures, Federal Reserve announcements, and interest rate decisions can trigger substantial market movement. 

The most active period typically occurs during the first few hours after New York opens, particularly while London remains operational. Trading activity can reach some of its highest levels globally during this overlap. 

Major pairs such as EUR/USD, GBP/USD, USD/CAD, and USD/JPY often experience significant liquidity during the New York session. For additional insights, visit our detailed guide to the New York trading session. 

Session Overlaps: Where the Action Is 

The most active periods in the forex market occur when two major trading sessions overlap. These windows attract participation from multiple regions simultaneously, increasing liquidity and trading volume. 

1. London-New York Overlap 

UTC: 13:00 to 17:00 
SAST: 15:00 to 19:00 

This is generally considered the most important overlap in the forex market. More than half of average daily forex trading volume can occur during this period as European and North American institutions trade simultaneously. 

Here are the benefits: 

• Tighter spreads 

• Greater liquidity 

• Faster execution 

• Stronger price movements 

• Increased institutional participation 

UTC: 08:00 to 09:00 
SAST: 10:00 to 11:00 

Although relatively short, this overlap can generate increased activity in yen-related pairs as European market participants react to developments from the Asian trading day. 

3. Sydney-Tokyo Overlap 

UTC: 00:00 to 07:00 
SAST: 02:00 to 09:00 

This overlap forms the core of the Asian trading session. Activity tends to concentrate in AUD, NZD, and JPY currency pairs, with regional economic announcements often influencing market sentiment. 

When Is the Best Time to Trade Forex? 

There is no universal answer to the best time to trade forex because different trading styles require different market conditions. 

For traders seeking high liquidity and strong price movement, the London-New York overlap is often considered the most attractive period. During these hours, market participation is at its highest, spreads are frequently tighter, and major currency pairs can experience substantial intraday movement. 

However, higher volatility also increases risk. Rapid price changes can lead to larger losses if positions are not managed appropriately. 

The most suitable trading session often depends on the currencies being traded: 

• EUR and GBP pairs - London and New York sessions 

• USD pairs - Primarily New York and overlap periods 

• JPY pairs - Asian session 

• AUD and NZD pairs - Sydney and Tokyo sessions 

The most active trading periods are not necessarily suitable for every market participant. Traders should consider their trading objectives, risk management framework, and the characteristics of the currency pairs they trade when determining the sessions that best support their approach. 

Best Time to Trade Forex in South Africa 

For traders in South Africa, the most active forex trading periods occur during the afternoon and early evening. 

• London session - Approximately 10:00 to 19:00 SAST 

• New York session - Approximately 15:00 to 00:00 SAST 

• London-New York overlap - Approximately 15:00 to 19:00 SAST 

Many South African traders favor the overlap period because it combines European and US market participation within convenient local trading hours. 

For country-specific guidance, read our dedicated resource on the best time to trade forex in South Africa. 

Best Days of the Week to Trade Forex 

Trading conditions can also vary depending on the day of the week. 

Generally, Tuesday through Thursday tend to produce the most consistent trading activity. Economic calendars are often busiest during these days, liquidity is strong, and market participation remains high across major financial centers. 

Typical conditions include: 

• Monday - Often slower as markets establish direction after the weekend 

• Tuesday - Increased liquidity and momentum 

• Wednesday - Strong activity and economic releases 

• Thursday - Continued institutional participation 

• Friday - Active early sessions but potentially quieter later in the day 

The forex market remains closed on weekends because major banking institutions and financial centres are not conducting normal business operations. 

Best Session for Each Currency Pair 

Different currency pairs tend to experience higher trading activity during sessions linked to their underlying economies. 

EUR/USD and GBP/USD 

These pairs typically experience the highest liquidity during the London and New York sessions, particularly during their overlap. Trading volume increases significantly as European and US institutions participate simultaneously. 

USD/JPY and AUD/JPY 

These pairs are often most active during the Asian session when Japanese market participants are active and regional economic data is released. 

AUD/USD and NZD/USD 

Trading activity generally peaks during the Sydney and Tokyo sessions, although liquidity can remain elevated during later sessions depending on broader market developments. 

Exotic Pairs 

Exotic currency pairs are usually most liquid when their domestic financial markets are open. For example, USD/ZAR generally experiences greater participation when South African market activity overlaps with London trading hours. 

Trading currency pairs during the sessions in which they typically attract the highest market participation can provide access to deeper liquidity and more consistent trading conditions, although market behaviour remains subject to prevailing economic and geopolitical factors. 

Read more: Exotic Currency Meaning: Top 5 Exotic Currency Pairs for Profitable Forex Trading  

A Note on Daylight Saving Time 

Forex session schedules can shift throughout the year because several major financial centers observe Daylight Saving Time (DST). 

The United States and the United Kingdom typically adjust clocks during spring and autumn, while Australia follows its own seasonal schedule. These changes can temporarily alter the timing of session openings and overlap periods. 

For this reason, many professional traders track market hours in UTC rather than local time zones. Using UTC as a reference makes it easier to calculate session timings accurately and avoid confusion when clocks change. 

South African traders should also be aware that overlap periods can move by approximately one hour during DST transitions in the US, UK, or Australia.  

Frequently Asked Questions 

What is the best time to trade forex? 

The London-New York overlap is often considered one of the most active times to trade forex because it typically offers high liquidity and trading activity. However, the most suitable trading window ultimately depends on the currency pairs you trade, your strategy, and your risk management approach. 

What time does the forex market open and close? 

The forex market typically opens on Sunday at approximately 17:00 ET when trading begins in the Asia-Pacific region and closes on Friday at approximately 17:00 ET after the New York session ends. This creates a continuous 24-hour market throughout the trading week. 

What are the forex session times in South Africa (SAST)? 

In South Africa, the Sydney and Tokyo sessions occur mainly overnight and during the early morning. The London session begins at approximately 10:00 SAST, while New York opens at approximately 15:00 SAST. The busiest period is usually the London-New York overlap from mid-afternoon to early evening, although timings may shift during Daylight Saving Time periods.