Forex runs 24 hours a day, five days a week — but not all hours are equal. The best time to trade is when volume and volatility are highest, because that’s when spreads are tightest and moves are cleanest. That means the London–New York overlap. This guide breaks down the four sessions, the overlaps, and when to trade — and avoid.
The four trading sessions
The market follows the sun through four major sessions (times in Eastern Time / ET):
| Session | Hours (ET) | Character |
|---|---|---|
| Sydney | 5:00 PM – 2:00 AM | Quiet open |
| Tokyo (Asian) | 7:00 PM – 4:00 AM | Moderate; JPY pairs active |
| London | 3:00 AM – 12:00 PM | High volume; the biggest session |
| New York | 8:00 AM – 5:00 PM | High volume; USD news |
The overlaps are the sweet spot
When two sessions run at once, volume surges. Two overlaps matter:
- London–New York (8:00 AM – 12:00 PM ET) — the busiest window of the day. The two largest sessions overlap, spreads are tightest, and the major pairs move most. This is the best time for most traders.
- Tokyo–London (3:00 AM – 4:00 AM ET) — a smaller bump, useful for yen and pound pairs.
Best times by pair
- EUR/USD, GBP/USD — most active during the London–New York overlap.
- USD/JPY, AUD/JPY — liveliest in the Tokyo session and the Tokyo–London overlap.
- Any USD pair — watch the New York session, when US economic data drops.
When to avoid trading
- Late Friday / the weekend gap — liquidity drains into the close, and prices can gap on the Sunday reopen.
- Major news releases — spreads can widen violently for seconds around events like the US jobs report; many beginners stand aside.
- The dead zone — the quiet hours after New York closes and before Tokyo picks up see thin volume and choppy moves.
Does the best time depend on your strategy?
Yes. Day traders and scalpers want the high-volume overlap, when moves are fast and spreads tight. Swing traders care far less about the hour — they hold for days, so entry timing within a session matters little. Match your hours to your style, as covered in our forex trading strategies guide.
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Frequently asked questions
What is the single best time to trade forex?
The London–New York overlap, roughly 8:00 AM to 12:00 PM ET, when the two biggest sessions run together and volume peaks.
Can you trade forex 24/7?
No — forex runs 24 hours a day but only five days a week, from Sunday evening to Friday evening ET. It closes over the weekend.
Is it bad to trade during news?
It’s high-risk. Spreads widen and prices whipsaw around major releases, so many traders avoid the moments right around scheduled news.
Does the best time change with daylight saving?
Yes — session overlaps shift by an hour when regions change their clocks, so double-check the times seasonally.
Sources
Bank for International Settlements (2025). Triennial Central Bank Survey — OTC foreign exchange turnover in April 2025. Global FX turnover reached $9.6 trillion per day. bis.org
Risk warning. Trading Forex and CFDs carries a high level of risk and may not be suitable for all investors. Session times shift with daylight saving. This article is for educational purposes only and does not constitute financial advice.