If you’re diving into forex trading, knowing when to trade is just as important as knowing what to trade. Unlike the stock market, which follows a strict schedule, forex runs 24 hours a day, five days a week. But not all hours are created equal-some bring bigger opportunities than others.

Think of it like a global relay race. As the earth spins, the trading baton gets passed from one major financial hub to the next. It starts in Sydney, moves to Tokyo, then heads to London, and finally lands in New York. Each city adds its own energy and flavor to the market.

The four main Forex trading sessions:

Sydney session (9 PM – 6 AM GMT)

This is where the action begins! The Australian and New Zealand dollars take the spotlight. It’s usually a quieter session, like the calm before the storm.

Tokyo session (12 AM – 9 AM GMT)

The Asian markets wake up, and the Japanese yen takes center stage. This session moves at a moderate pace, allowing traders to identify trends before the more intense London and New York sessions kick in.

London session (7 AM – 4 PM GMT)

London brings a rush of activity, with the euro and British pound making strong moves. This is prime time for forex trading—high volatility, big opportunities, and plenty of action.

New York session (12 PM – 9 PM GMT)

The US dollar takes the spotlight, and the market becomes even more intense, especially when it overlaps with London. This is another peak trading window, full of big swings and high volume.

The magic of overlapping sessions

Some of the best trading opportunities happen when two sessions overlap, creating a surge in trading volume and volatility. Here’s where things get extra exciting:

• London & New York Overlap (12 PM – 4 PM GMT): 

The busiest and most traded session, especially for pairs like GBP/USD. Big players are active, and price movements can be explosive.

• Tokyo & London Overlap (7 AM – 9 AM GMT): 

Less volatile than the London/New York overlap but still offers decent trading opportunities.

Tip: These sessions follow GMT, so adjust them to your time zone. There are plenty of online tools to help you sync up with the market.

Why Forex trading hours matter

• Find the best times to trade: Want high volatility? Trade during the London and New York sessions. Prefer a slower pace? Sydney or Tokyo might suit you better.
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• Understand market behavior: Different sessions have different characteristics. The Tokyo session is often more predictable, while the New York session can be more volatile and dynamic.

Plan your strategies: Scalping might work best in Tokyo, while trend-following strategies could shine during the London session.

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Now that you know the rhythm of the forex market, you can plan your trading sessions for the best opportunities. Remember, it’s not just about when you trade-it’s about how you trade! Choose the sessions that match your style, manage your risk, and always trade with a plan.

Log in to Deriv Academy to sharpen your trading skills today!

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