Forex trading sessions and the best times to trade
The forex market is open 24 hours a day on weekdays, but it is not equally busy all day. Activity follows the business hours of the big financial centres. Knowing the sessions helps you trade when your pair has movement, and avoid the quiet hours that chop you up.
The four sessions in UTC
Times below are in UTC while the UK and US are on summer time. When they move to winter time (clocks go back), the London and New York sessions start one hour later in UTC.
| Session | Hours (UTC) | Typical character |
|---|---|---|
| Sydney | 21:00 to 06:00 | Quiet. AUD and NZD pairs show most of the action |
| Tokyo (Asia) | 00:00 to 09:00 | Moderate. JPY pairs are active, EUR and GBP pairs often range |
| London | 07:00 to 16:00 | The busiest session. Big moves in EUR, GBP and CHF pairs |
| New York | 12:00 to 21:00 | Very active when it overlaps London, then it fades |
The London and New York overlap
From about 12:00 to 16:00 UTC both London and New York are open. This overlap usually has the most volume, the tightest spreads on major pairs and many US data releases. It is also when reversals of the London move often start.
Which session for which pair?
- EUR/USD and GBP/USD: London open and the overlap
- USD/JPY: Tokyo and New York
- AUD/USD and NZD/USD: Sydney, Tokyo and London
- Gold (XAU/USD): London and New York, especially around US data
The weekly rhythm
The market opens on Sunday evening (21:00 UTC in summer) and closes on Friday evening. Mondays can start slowly while the week finds direction. Fridays often see profit taking before the close. Spreads widen for a short time around the daily rollover at about 21:00 to 22:00 UTC.
Test which session suits you
Do not guess. Backtest the same rules, then split the results by session. Many traders find that most of their profit comes from one session and most of their losses from another. In MEEYONA, Insights groups your trades into Asia (00:00 to 07:00 UTC), London (07:00 to 12:00), the London and New York overlap (12:00 to 16:00) and New York (16:00 to 21:00).
Frequently asked questions
What is the best time to trade forex?
For the major pairs, the London open and the London and New York overlap (about 07:00 to 16:00 UTC in summer) have the most movement and the lowest costs. The best time for you is the session where your own backtests do best.
Why do spreads widen at night?
Liquidity is thin around the daily rollover (about 21:00 to 22:00 UTC), so brokers widen spreads. Avoid placing market orders then.
Do the sessions change with daylight saving time?
Yes. The UK and US change their clocks on different dates, so the overlap shifts by an hour for a few weeks in spring and autumn. Check the dates each year.