The following times are our recommendations for optimum forex market trading conditions:
- 2:20 pm – 6:00 pm Berlin Time/MEZ* (8:30 am – 12:00 pm EST**). This time marks the period when US futures start trading, leading to increased volatility as traders react to news and events.
- 09:00 am – 12:00 pm Berlin Time/MEZ (2:45 am – 6:00 am EST). This time frame is critical as major markets (US/London) overlap, offering excellent trading opportunities.
* Berlin Time is also known as Central European Time (CET), Middle European Time (MET), or Mitteleuropäische Zeit (MEZ)
**Eastern Standard Time (EST) refers to the time on the eastern seaboard of America, and is the same as New York Time.
Recommendation from WR Trading:
- We suggest that you focus on the major overlapping sessions to capitalize on heightened market activity and volatility.
- Because trading activity varies significantly throughout the day, knowing the best forex trading hours can help you maximize your opportunities.
- This article covers the best times to trade forex, exploring various market sessions, the key overlapping sessions, volatility, and more.
What are Forex Trading Sessions?
Forex trading sessions are the four primary market sessions of London, New York, Tokyo (Asia), and Sydney.
Understanding these market sessions will help you to anticipate likely price movements, and determine when to enter and exit trades (listed here in order of importance):
London Session
- Time: 09:00 am – 6:00 pm Berlin Time/MEZ (2:45 am – 12:00 pm EST)
- Characteristics: Known as the most active market session, London overlaps with both the New York and Asia market sessions, leading to high trading volumes and volatility.
New York Session
- Time: 2:00 pm – 10:00 pm Berlin Time/MEZ (New York opens at 9.30 am Eastern Standard Time, EST)
- Characteristics: This market session sees high volatility because it overlaps with the London market session, and when major economic reports are released or news bulletins issued, they can impact the USD significantly.
Asia Session (Tokyo)
- Time: 01:00 am – 07:00 am Berlin Time/MEZ (6.45 am – 2.45 pm EST)
- Characteristics: The Asian market session is generally less volatile but can still offer good opportunities, particularly when significant news from Japan or Australia is released.
Sydney Session
- Time: 1:00 am – 07:00 am Berlin Time/MEZ (8 pm – 2 am EST)*
- Characteristics: This market session is often quieter, serving as a precursor to the Asian session. It can offer you lower volatility, yet still present trading opportunities, though nothing like the US/London overlapping session.
*Tokyo and Sydney happen at more or less the same time in Berlin Time/MEZ, with daylight saving hours in different locales resulting in slight differences between seasons.
Overlapping Sessions
Overlapping trading sessions, particularly between London and New York, are crucial for traders as they provide higher liquidity and volatility, making them ideal for trade opportunities.
Flat markets are hard to read and low on profits, hence you’ll want to eliminate that frustration while optimizing your chances of capitalizing on sizable price movements when markets are busy and somewhat volatile.
Trading Hours Table*
| Trading session | Active hours (MEZ) | Active hours (EST) | Major financial centers | Peak trading hours |
|---|---|---|---|---|
| London session | 8:00 am – 5:00 pm | 2:00 am – 11:00 am | London (UK), Frankfurt, Paris | 9:00 am – 1:00 pm in MEZ and 3:00 am – 7:00 am in EST |
| New York session | 1:00 pm – 10:00 pm | 7:00 am – 4:00 pm | New York (USA), Toronto (Canada) | 2:00 pm – 5:00 pm in MEZ and 8:00 am – 11:00 am in EST |
| Tokyo session | 1:00 am – 7:00 am | 6:00 pm to 3:00 am | Tokyo (Japan), Hong Kong, Singapore | 3:00 am – 5:00 am in MEZ and 9:00 pm – 11:00 pm in EST |
| Sydney session | 1:00 am – 7:00 am | 6:00 pm to 3:00 am | Sydney (Australia), Wellington (NZ) | 11:00 pm – 3:00 am in MEZ and 5:00 pm – 9:00 pm in EST |
* Remember that times might vary slightly based on daylight savings changes
Why are Forex Market Session Times important?
Understanding forex market sessions is part of your baseline trading intelligence, and essential for several reasons:
- Volatility
- Liquidity
- Economic news
- Trade execution
- Strategic planning
- Market Behavior
1. Volatility and price movements
Certain times of the day experience higher volatility, especially during overlapping market sessions (especially the overlap between the London and New York market sessions).
This volatility can lead to significant price movements, creating more trading opportunities－flat markets don’t do much for forex traders.
2. Liquidity
Active market trading sessions provide greater liquidity, which means there are more buyers and sellers in the market. This can result in tighter spreads and better execution prices, making it easier to enter and exit trades.
3. Economic news releases
Major economic data and news announcements often happen during specific market sessions., and these events can dramatically impact currency prices－being aware of them will help you position yourself accordingly.
4. Trade execution
Knowing when the market is most active allows you to execute trades more efficiently (higher activity levels mean that trades are filled more quickly, reducing the risk of slippage).
5. Strategic planning
Understanding market session times enables you to plan your strategies more effectively (you can focus on trading during the most favorable overlapping sessions, avoiding quieter periods that typically generate fewer opportunities).
6. Market Behavior
Different market sessions are influenced by various market participants－banks, institutions, and retail traders－and each group tends to act differently based on the time of day, affecting market dynamics.
In summary, being aware of forex market times helps you to optimize your strategies, manage risks, and enhance your overall trading performance, and thus profitability.
There are more chances to find good trades during volatile markets
Volatile markets often present the best trading opportunities, because you get to leverage rapid price movements to secure profits, especially during overlapping sessions, when multiple markets are active.
Of course, volatility is the classic double-edged sword, as sharp rises and dips in price also make trading challenging, which is why we recommend you enroll in the WR Trading Course to develop the acumen every trader needs to scale up and generate profits over the long term.
Can You Trade Forex 24/7?
No, the forex market closes on the weekend.
It does, however, operate 24 hours a day, five days a week (between markets worldwide), allowing traders to engage in trading activities at virtually any time of the day or night on weekdays.
Few successful traders spend all day and night at the keyboard, however－it’s crucial to focus on the most active market sessions for better opportunities.
What time does the Forex Market open?
The forex market opens on Sunday at 10:00 pm Berlin Time/MEZ, and closes on Friday at 10:00 pm Berlin Time/MEZ ( Sunday 5:00 pm – Friday 5:00 pm in EST).
This continuous operation allows for trading across different global markets, but you’re better off selecting one or two daily peak activity market sessions and applying your strategy to such opportune moments.
All too often, when traders take a few losses in peak activity sessions, they’ll be tempted to “catch up” and make up for their losses by extending their trading hours, leading them straight into less volatile and often flat moments in the trading day where they’ll simply throw good money after bad.
Sticking to the most profitable market trading sessions is a part of trading discipline, and it also eliminates the potential profit killers of illiquidity, stagnant prices, and slippage.
Can you trade forex during holidays?
Yes, you can trade forex during holidays, but market activity may be lower, and there can be subtle negative impacts on your usually profitable strategies.
Many major banks and institutions close on national holiday days or during more extended holidays, resulting in reduced liquidity and far less potential volatility.
During which time is the most important forex news presented?
Key economic reports and news releases (that will impact your trade outcomes) often occur during the New York and London market sessions.
Insperity, Inc. (NSP) typically issues important news or earnings reports during standard US business hours, especially between 9:00 am and 4:00 pm Eastern Standard Time (EST).
The Federal Reserve’s various announcements are typically released at either 2 pm EST or 2.30 pm EST on a Wednesday, while The New York Fed will publish the EFFR for the previous business day on their website at 9:00 am.
Major announcements, such as non-farm payrolls (NFP) and interest rate decisions, can lead to significant market movements that will present you with good trading opportunities.
Conclusion
Understanding the best forex market sessions to trade is vital for maximizing trading opportunities, while also eliminating potential hazards like illiquid trading conditions, flat markets, and slippage.
Focusing on the primary market sessions and (especially) overlapping sessions and being aware of major economic news releases can greatly enhance your trading strategy.
By concentrating on the potentially most profitable moments in a trading day, you’re giving yourself the best chance of being able to find good trading opportunities, and turn a consistent profit.
Frequently Asked Questions on Forex Market Hours:
What are forex market sessions and overlapping sessions?
Market sessions refer to specific time frames during which major financial centers are open for trading. Overlapping sessions occur when two or more major markets are active simultaneously, leading to increased volatility and liquidity.
How do overlapping sessions impact trading?
Overlapping sessions provide more opportunities for traders due to heightened activity and tighter spreads. They often coincide with significant news releases, amplifying price movements, and whether you’re going short or long on a currency pair, you need prices to move significantly in order to capture profits.
When is the best time to trade forex?
At WR Trading we maintain, from our years of experience in the game, that the best times to trade forex are during overlapping sessions, particularly between London and New York, as these periods typically see the most significant price movements and trading volumes. By strategically selecting your trading hours and focusing on overlapping market sessions, you can enhance your forex trading experience, eliminate unnecessary hindrance, and noticeably improve your profitability.
Will trading forex for longer hours mean more profits?
No, not necessarily, as if you capitalize on overlapping sessions and try to plump up a day’s profits by rolling on into quieter times in the markets, you may suffer churn (entering and exiting trades without profit or loss, but accruing trading fees nonetheless), and also simply fail to find good trading opportunities when volatility ebbs. In theory, it’s possible, but you’re likely to be better off slightly increasing your position size in highly active overlapping market sessions than trying to nickel and dime your way through a higher volume of trades over extended hours.
