The forex market runs almost 24 hours a day during weekdays because trading centers around the world open and close at different times. Understanding the four major sessions — Sydney, Tokyo, London, and New York — and their overlaps helps you pick times with the liquidity and volatility that suit your trading style. The forex market technically opens on Sunday evening (New York time) and closes on Friday evening. :contentReference[oaicite:0]{index=0}

Quick overview — the 4 major forex sessions

The market is conventionally split into four sessions. Local times vary by daylight savings; below are typical GMT ranges:

These session windows overlap as the globe moves through time zones. Overlaps are important because they typically bring higher trading volumes and tighter spreads. :contentReference[oaicite:1]{index=1}

Why session overlaps matter — the best times to trade

The single most important overlap is the London–New York window. When London and New York are both open, liquidity spikes and many major economic releases occur — this creates sustained volatility ideal for many strategies. That overlap commonly runs roughly 08:00–12:00 ET (13:00–17:00 GMT). :contentReference[oaicite:2]{index=2}

Session-by-session — what to expect

Tokyo / Asian session

The Asian session often shows quieter ranges except around Japanese or Asian data releases. Pairs with JPY, AUD, and NZD are typically more active during this period. Some overlaps occur with Sydney early in the Asian session that create short bursts of liquidity. :contentReference[oaicite:4]{index=4}

London / European session

London is a heavy liquidity center — many major FX desks are active here. Expect larger moves on EUR and GBP crosses. London also overlaps with Tokyo briefly and with New York later in the day, which makes it central to global trading flows. :contentReference[oaicite:5]{index=5}

New York / North American session

New York is active for USD flows and often triggers big moves when US macro data (NFP, CPI, FOMC) are released. The London–New York overlap is responsible for a large share of daily volume and volatility on majors like EUR/USD and GBP/USD. :contentReference[oaicite:6]{index=6}

Best times to trade depending on your strategy

There is no universal "best" hour — it depends on what you want:

• Scalpers: Prefer overlap periods (London–New York) for tight spreads and frequent small moves.
• Day traders: Trade during sessions with expected news flow (New York morning for US data; London morning for European data).
• Swing traders: May enter during quieter sessions if they want to capture larger trend moves over days.
• News traders: Target scheduled releases — but beware wider spreads and slippage during those moments. :contentReference[oaicite:7]{index=7}

Practical tips for choosing trading hours

1. Know your pair: Trade EUR/USD or GBP/USD in London–New York overlap; trade AUD/JPY during Asian session.
2. Use session heatmaps: Many charting tools highlight session activity — use them to spot the most active times for your pair.
3. Avoid illiquid times: Low liquidity (e.g., late New York/early Sydney) can widen spreads and increase slippage.
4. Plan for news: Either trade the news with strict rules or avoid it to prevent erratic fills and slippage. :contentReference[oaicite:8]{index=8}
5. Manage risk: Smaller position sizes during volatile overlaps or around major releases help protect capital.

Example: Using session knowledge — a quick walkthrough

You trade EUR/USD and prefer higher liquidity. Check that the London–New York overlap is active (13:00–17:00 GMT). Look at the economic calendar for any US or EU releases. If no major conflicting event, trade during the overlap with a tight stop-loss and defined R:R. Using demo trades first will confirm execution quality and typical spreads for your broker.

Special considerations — spreads, slippage, swaps

Spreads are usually tighter when liquidity is high. During low-liquidity hours or just after news, spreads can widen and slippage can occur — your order may fill at a worse price than expected. Overnight swaps/rollovers may apply if you hold positions past the daily cut-off (usually in late New York afternoon). Always check your broker’s schedule and fees. :contentReference[oaicite:9]{index=9}

Tools that help you trade session-aware

• Market hours plugins and session shading on charts
• Economic calendars with local time conversion
• Broker demo accounts to test spreads & execution during chosen hours
• Automated alerts for session opens/overlaps

How RFXSignals fits into your timing strategy

RFXSignals delivers time-stamped trade alerts with suggested entries, stop-loss and take-profit levels. Signals are designed to be compatible with major sessions and common overlap windows so you can act when liquidity and volatility match your chosen strategy. Try signals on a demo account during your preferred session to see how execution behaves before trading live. Get RFXSignals.

FAQ

Q: Is forex open 24/7?

A: No — forex runs 24 hours a day but only 5 days a week, opening Sunday evening (New York) and closing Friday evening. :contentReference[oaicite:10]{index=10}

Q: When is the most volatile time?

A: Typically the London–New York overlap is the most volatile and liquid period for major pairs. :contentReference[oaicite:11]{index=11}

Q: Should I always trade during the overlap?

A: Not necessarily — it depends on your strategy, risk tolerance, and ability to manage quick moves. Some traders prefer quieter sessions. :contentReference[oaicite:12]{index=12}

Conclusion

Understanding forex market hours and session overlaps is one of the quickest ways to improve execution and pick higher-probability trading times. Use session knowledge together with an economic calendar, demo testing, and sensible risk controls. If you want signals tailored to session activity, try RFXSignals on demo first to match timing and execution with your broker.

Ready to trade during the best sessions? Visit RFXSignals