Forex Trading Sessions Explained
The forex market operates 24 hours a day, 5 days a week. But not all hours are equal — volatility, liquidity, and spreads vary significantly depending on which financial centers are open.
The Three Major Sessions
Asian Session (Tokyo)
- Hours: 00:00 - 09:00 GMT (midnight to 9am London time)
- Key pairs: USD/JPY, AUD/USD, NZD/USD
- Character: Lower volatility, tighter ranges
- Best for: Range trading, grid strategies
European Session (London)
- Hours: 07:00 - 16:00 GMT
- Key pairs: EUR/USD, GBP/USD, EUR/GBP
- Character: Highest volume, tightest spreads, strong trends
- Best for: Trend following, breakout strategies
American Session (New York)
- Hours: 12:00 - 21:00 GMT
- Key pairs: USD/CAD, all USD pairs
- Character: High volatility, especially during London overlap
- Best for: Momentum trading, news-based strategies
Session Overlaps — The Best Trading Times
The most active periods are when two sessions overlap:
London + New York (12:00-16:00 GMT):
- Highest trading volume of the day
- Tightest spreads
- Strongest price movements
- Most major economic releases
Tokyo + London (07:00-09:00 GMT):
- Good volatility pickup
- European traders reacting to Asian moves
- Breakout opportunities
Best Times for Each Strategy
| Strategy | Best Session | Why |
|---|---|---|
| Trend Following (SteadyPips) | London, London+NY | Strongest trends form here |
| Grid Trading (GridMaster) | Asian, quiet periods | Ranges are ideal for grids |
| Scalping | London+NY overlap | Tightest spreads, most movement |
| Swing Trading | Any | Holds across sessions |
Times to Avoid Trading
- Sunday open (22:00 GMT) — Low liquidity, wide spreads, potential gaps
- Friday close (21:00 GMT) — Decreasing liquidity, weekend risk
- Major holidays — Thin markets, erratic moves
- Major news releases — Unless you’re specifically news trading
EA Trading and Sessions
Expert Advisors can trade during all sessions automatically:
- SteadyPips works best during London and NY sessions when trends are strongest
- GridMaster can operate 24/5 but performs well during ranging Asian sessions
Both EAs include volatility filters to avoid trading during inappropriate conditions.
This article is for educational purposes only. Trading forex carries significant risk. Past performance is not indicative of future results.