What Are Forex Market Hours?
The foreign exchange market is the largest and most liquid financial market in the world, with a daily trading volume exceeding $7.5 trillion according to the Bank for International Settlements (BIS) 2022 Triennial Survey. Unlike stock exchanges that operate during fixed business hours, the forex market runs 24 hours a day, five days a week — from Sunday evening (22:00 UTC) to Friday evening (22:00 UTC). This around-the-clock availability is possible because forex is a decentralized over-the-counter (OTC) market. There is no single central exchange. Instead, trading flows continuously as major financial centers around the world open and close in sequence — from Sydney to Tokyo, then to London, and finally to New York. Understanding when each session is active is critical for traders because liquidity, volatility, and spread conditions vary significantly throughout the 24-hour cycle.
The Four Major Trading Sessions
The forex market is divided into four major trading sessions, each centered on a key financial hub. While trading never stops during the business week, the character of the market changes dramatically depending on which session is active.
Sydney Session (22:00 – 07:00 UTC)
The Sydney session kicks off the trading week. It is the smallest session by volume, accounting for roughly 5% of daily global turnover with approximately $375 billion traded per day. The most active pairs include AUD/USD, NZD/USD, and AUD/NZD.
Tokyo Session (00:00 – 09:00 UTC)
The Tokyo session handles about 16% of daily turnover ($1.2 trillion per day). The Japanese yen dominates activity, making USD/JPY, EUR/JPY, and GBP/JPY the most traded pairs.
London Session (08:00 – 17:00 UTC)
London commands 38% of global daily volume — approximately $2.85 trillion per day. Nearly every major currency pair sees peak liquidity during London hours.
New York Session (13:00 – 22:00 UTC)
The New York session handles about 19% of global turnover ($1.425 trillion per day). The session overlaps with London for four hours (13:00–17:00 UTC), creating the most liquid and volatile window in the entire 24-hour cycle.
Session Overlaps — When Liquidity Peaks
The most significant trading opportunities occur during session overlaps. The London–New York overlap (13:00–17:00 UTC) generates over 50% of daily volume with the tightest spreads and fastest execution.
How Daylight Saving Time Affects Trading
DST shifts can temporarily alter the overlap between sessions. The US, Europe, and Australia each change their clocks on different dates, creating transition periods where session timings shift relative to UTC.
Best Currency Pairs by Session
Each session has currency pairs that are naturally more active: Sydney (AUD/USD, NZD/USD), Tokyo (USD/JPY, EUR/JPY), London (EUR/USD, GBP/USD), New York (EUR/USD, USD/JPY). Trading pairs during their most active session means tighter spreads and better fills.
Tips for Trading Different Sessions
Sydney/Tokyo favor range-bound strategies. The London open (08:00–10:00 UTC) is ideal for breakout strategies. The London–New York overlap (13:00–17:00 UTC) is the prime window for trend-following. Avoid late New York hours (20:00–22:00 UTC) when liquidity thins.
Forex Holiday Calendar
Liquidity drops during major holidays. Christmas to New Year (Dec 24 – Jan 2) is the quietest period. US, UK, and Japanese bank holidays also reduce session volumes. Reduce position sizes or avoid trading during major holidays.