When is the best time to trade forex?

Forex trading is unique compared to other financial markets because it operates 24 hours a day, five days a week. Thanks to its global nature, forex trading is divided into sessions based on major financial centers around the world.
Understanding when different regions are active can help traders find the best opportunities to enter and exit the market.

In this guide, we’ll break down forex trading hours by region, explain session overlaps, and help you identify the best times to trade.

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Forex Market Sessions

The forex market is traditionally divided into four major trading sessions:

• Sydney Session
• Tokyo Session
• London Session
• New York Session

Each session corresponds to the business hours of a major financial hub. Because time zones overlap, trading volume and volatility can increase at certain times of the day.

Here’s a breakdown:

Region	Trading Session	Opening Time (UTC)	Closing Time (UTC)
Australia	Sydney	10:00 PM	7:00 AM
Asia	Tokyo	12:00 AM	9:00 AM
Europe	London	8:00 AM	5:00 PM
North America	New York	1:00 PM	10:00 PM

Note: During Daylight Saving Time (DST), some session hours shift slightly, particularly London and New York.

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Session Overlaps: The Most Active Trading Periods

The most active trading times occur when sessions overlap.
During overlaps, market liquidity is higher, spreads can tighten, and price movements are often more pronounced.

Here are the key overlaps:

• London/New York Overlap (1:00 PM – 5:00 PM UTC)
  The busiest overlap. Both the US and European markets are highly active.
• Tokyo/London Overlap (8:00 AM – 9:00 AM UTC)
  A less volatile overlap, but still offers some trading opportunities.
• Sydney/Tokyo Overlap (12:00 AM – 7:00 AM UTC)
  Mainly affects AUD, NZD, and JPY currency pairs.

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Best Times to Trade Forex

The best times to trade forex internationally generally coincide with high liquidity periods — especially during session overlaps.

• For Major Pairs (like EUR/USD, GBP/USD):
  London and New York session overlap is ideal.
• For Asian Pairs (like AUD/JPY, USD/JPY):
  Tokyo session and its overlap with Sydney offer better trading conditions.
• Avoid low-liquidity periods, like late Friday afternoon (before the weekend) and during public holidays, when markets are thin and spreads widen.

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Key Tips for International Forex Traders

• Know your currency pairs: Different pairs are more active in different sessions.
• Watch economic news releases: Events like Non-Farm Payrolls (NFP) or European Central Bank announcements can cause major market moves.
• Adjust for Daylight Saving Time: Some session times shift by one hour depending on the time of year.

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Final Thoughts about trading hours

Understanding forex trading hours by region is crucial if you want to optimize your trading performance.
By focusing on periods of high activity — especially during session overlaps — you can trade in a more dynamic environment with tighter spreads and more opportunities.

No matter where you are in the world, timing is everything when it comes to forex trading.

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