Forex rarely sleeps, as its instruments are traded globally. Individuals and institutions buy and sell currencies from Tokyo to New York. Some periods provide higher liquidity than others, which is why these sessions matter. Knowing how to trade is the first part of the success equation — you must also choose the most favorable times for your pair. Here is an overview of Forex trading sessions in 2021.
Forex session times in 2021 have not changed. You have probably heard that this financial market is open all day long. It is also the largest in the world, with a daily turnover of over 5 trillion US dollars. The incessant action is possible due to a combination of different Forex trading sessions. As a result, currencies may be bought and sold five full days a week, any time, wherever you are. All you need is a registered account and the right software. Knowledge of trading session times comes in handy. One may choose periods with the highest energy in the market. By session timing Forex trades, you minimize the probability of delays in execution. Learn more useful tips in our introduction to Forex Trading. Here are the timing fundamentals.
Forex Trading Session Times
Now, let’s break this 24-hour market frenzy into the right segments — distinct Forex trading session times. These are four major rounds: in Sydney, Tokyo, London, and New York. However, there are only three peak periods, and these attract the most interest. What trading sessions with the Alpari broker read in our review.
Experienced traders know what is better than to spread their action over the entire 24-hour period. Instead, they target specific intervals within Forex sessions time and make the most out of this market.
So, which locations make up the Forex trading session triada? These are the Asian, the London, and the New York intervals. Other trading hubs in Asia include Singapore and Hong Kong. Together with London and New York their Forex market trading sessions provide most of the global turnover (over 75%)!
Each new trading day starts from the International Dateline. This happens on Monday morning with the trading session in New Zealand, which is another financial hub. The opening happens at 7 a.m. local time, which is 8 p.m. GMT (10 p.m. in spring and summer). For most other countries in the world, it is still Sunday. Paradoxically, the session is called the Sydney session anyway.
Afterward, the market remains open until its formal closing on Friday. The final interval — the New York session — finishes at 5 p.m. local time, which is 10 p.m. in the UK (unless it is summer). Please note that times vary in different countries due to the Daylights Savings Time. These changes happen in March, April, October, and November. Here are the intervals in Greenwich Mean Time (GMT)
- Sydney: from 10 in the evening to 7 in the morning.
- Tokyo: from midnight to 9 in the morning;
- London: from 8 in the morning to 5 in the afternoon.
- New York: from 1 in the afternoon to 10 in the evening.
Activity During Forex Market Sessions
Between opening and closing, the market remains active during every trading session. However, occasional slumps in its activity and volatility are typical for the period from 7 to 10 p.m. GMT. This is when US traders leave the market, while Kiwis and Aussies are only preparing for their day. On Christmas and New Year’s Eve, the global activity ceases altogether. As you can see, knowledge of Forex market session times is important. But what are the best periods in general? This depends on your financial instrument(s). Check our trade Forex for beginners guide to see how these Forex market sessions compare.
How to Choose Forex Session Hours
Traders should choose the busiest times, as they ensure the highest volumes. These are periods of overlayed fx action in different countries. More money is changing hands, so it is easier for buyers and sellers to connect. When exactly this happens depends on the season, which determines the local Forex market session hours. For example, in summer, the coinciding sessions are:
- Tokyo and London between 3 and 4 a.m. Eastern Time,
- London and New York between 8 a.m. and noon Eastern Time (this also happens in winter).
Determine the best Forex market session hours for your currency pairs. For example, if you are trading a minor pair with the yen (e.g., EUR/JPY or GBR/JPY), you should know the highest volumes are seen when trading in London and Tokyo happens simultaneously. If you trade EUR/USD, wait for the European and US sessions to concur. This is not rocket science!
These opening and closing times are vital information for a trader. Incorporate knowledge of Forex session hours into your financial planning and practice. The most favourable trading periods are when the market is the most active. Whether you open a short or long position, make sure there is sufficient market movement for a match.