Best times to trade forex (and times to avoid)

Introduction

Forex trading runs around the clock, but liquidity and price moves vary by session. The clocks of London, New York, Tokyo, and Sydney shape the market rhythm. By knowing when liquidity tends to be highest and when it tends to be thinner, you can plan trades with fewer surprises.

What affects forex liquidity?

Liquidity rises when major financial centers are open and banks execute orders. Overlaps between sessions tend to boost activity, while long stretches with one or more centers closed can lead to narrower ranges and wider spreads. News events can also spike volatility temporarily.

The three main trading sessions

• Sydney session: roughly 22:00–07:00 GMT
• Tokyo session: roughly 00:00–09:00 GMT
• London session: roughly 08:00–16:00 GMT
• New York session: roughly 13:00–22:00 GMT

The London-New York overlap

From about 13:00 to 16:00 GMT, London and New York are both open, often delivering the market’s most active window for major pairs like EURUSD and GBPUSD.

When to be careful or avoid trading

Low-liquidity hours

Late Asian session and the hours just before the London open tend to be quieter, with smaller price moves and tighter ranges, which can reduce trading opportunities and sometimes hide false breakouts.

Major news releases and events

Economic data releases and central bank decisions can trigger rapid moves. These times see higher risk and wider spreads, so many traders choose to sit on the sidelines or reduce position sizes around these events.

End-of-week and weekend gaps

Friday sessions can be choppier as traders wind down positions ahead of the weekend. Weekend gaps can occur when markets reopen, so some traders avoid holding positions over weekends.

Practical tips for timing

Know your instrument; check session times

Different currency pairs show different activity patterns. Some pairs are more liquid during London, others during New York, and some remain active across multiple sessions.

Use liquidity and volatility indicators

Follow real-time liquidity measures and volatility readings, and set alerts around anticipated session starts, overlaps, and news releases.

Keep notes and adapt to your timezone

Track your own results to see which times work best for your trading style and the instruments you trade. Adjust your routine to your local clock and the markets you monitor.

Summary

Forex liquidity and volatility follow the clock. The busiest times come from session overlaps, especially the London-New York overlap, while quiet hours outside major centers can pose different trading conditions. Use session awareness, calendars, and instrument-specific patterns to guide when you choose to trade and when you might sit out.