UNDERSTANDING TRADING SESSIONS
Four major trading sessions make up the Forex market: Sydney, Tokyo, London, and New York, and it is open 24 hours a day.
The three high volume trading sessions that traders focus on are Asia, Europe and North American sessions or Tokyo, London and New York.
The four top trading centres: London, New York, Singapore, and Hong Kong, make up 75% of the global forex turnover. The Sydney session starts with the New Zealand forex market opening on a Monday morning; in other parts of the world, it is late Sunday. The forex markets remain open until Fridays. The markets are not open during weekends and in some countries on certain public holidays. All forex markets are closed on Christmas and New Year’s Day.
Spring/Summer in the U.S. (March/April – October/November)
The open and close times are based on each centre’s local business hours, which can be from 7:00-9:00 AM local time.
(EDT – Eastern Daylight Time, BST – British Summer Time, GMT – Greenwich Meridian Time)
Fall/Winter in the U.S. (October/November – March/April)
(EST – Eastern Standard Time, GMT – Greenwich Meridian Time)
Daylight Savings Time
During October and November and March and April, the open and close times will vary in certain countries such as United States, Australia, and England due to the change to or from daylight savings time (DST). Japan does not practice daylight savings time.
Overlapping Trading Sessions
There are overlapping between the opening of two sessions, as seen from the below table. E.g., the London session and New York session overlap during the summer and winter months.
When two markets sessions overlap, the trading volume is higher, and therefore the markets are more volatile. The London session has the highest volumes; most trading activities occur during this session.