WHEN TO TRADE FOREX 

WHEN TO TRADE FOREX 

Forex trading hours refer to specific times when market participants can trade currencies globally. These hours are divided into trading sessions based on major financial centers (Tokyo, London, New York, Sydney). 

Global forex trading sessions

WHEN TO TRADE FOREX 1

Each of these sessions represents a key financial hub within its respective region. They house central banks and a massive number of forex traders. 

 

Key trading sessions

London – The largest and most liquid forex market in the world. Dominated by European banks, it seriously impacts the British pound and the euro. 

New York – This is the second largest forex market, where traders actively speculate (given the US dollar’s dominance in global currency pairs).

Also, the presence of two major stock exchanges — NYSE and NASDAQ — further influences this session through Federal Reserve policies, economic indicators, and market events. 

Tóquio – While less liquid and volatile compared to London and New York, this session remains important. The Japanese yen (JPY) is involved in approximately 16.8% of all global forex transactions. 

 

Best time to trade Forex

The optimal trading period is during the overlap of major sessions, particularly London-New York (8:00 AM – 12:00 PM ET), when market activity, liquidity, and volatility peak.