Best Times to Trade Forex (And Times to Avoid)

Best Times to Trade Forex (And Times to Avoid)

Timing is everything in forex trading. The foreign exchange market runs 24 hours a day, five days a week but that doesn’t mean every hour offers the same trading opportunities. Knowing when to trade (and when to avoid the charts) can make a massive difference in your results.

In this blog post, you’ll learn the best times to trade forex, the most active sessions, and the worst times to stay out of the market especially if you’re a beginner looking to reduce risk.

 Forex Market Hours: The Basics

The forex market operates across four major trading sessions:

1. Sydney Session – Opens 10 PM GMT

2. Tokyo Session – Opens 12 AM GMT

3. London Session – Opens 8 AM GMT

4. New York Session – Opens 1 PM GMT

These sessions overlap at certain times — and that’s where trading opportunities peak.

✅ Best Times to Trade Forex

1. London–New York Overlap (1 PM – 4 PM GMT)

Most active time of the day.

This is when the two biggest financial centers are open at the same time, creating high volatility and excellent liquidity. Major currency pairs like EUR/USD, GBP/USD, USD/JPY see strong movement.

💡 Best time for day traders and scalpers

2. London Session (8 AM – 12 PM GMT)

Second most volatile period.

The London session accounts for roughly 30% of all forex trading volume. It often sets the tone for the day’s price direction.

💡 Ideal for swing traders and intraday setups

3. New York Session (1 PM – 5 PM GMT)

Good volatility and volume, especially at the open.

Once New York joins the game, USD pairs move sharply. News releases and economic data (like NFP, CPI) also happen during this session.

💡 Great time for trading USD-related pairs

4. Asian Session (12 AM – 4 AM GMT)

Best for JPY and AUD pairs.

Though quieter than London or New York, the Asian session is good for low-volatility strategies or trading pairs like AUD/JPY, NZD/USD, USD/JPY.

💡 Useful for traders who prefer slower markets or breakout setups

⚠️ Times to Avoid (Low Liquidity = Higher Risk)

❌ 1. Friday Afternoons (after 4 PM GMT)

The market slows down as traders close positions before the weekend. Liquidity dries up, spreads widen, and price becomes choppy.

❌ 2. Sundays (Opening Hours: 10 PM – 12 AM GMT)

Market reopens with low volume and often gaps. Not ideal for trading unless you’re managing weekend risk.

❌ 3. During Major Holidays

On days like Christmas, New Year’s, Easter, or national holidays, liquidity is poor, and price action can be erratic.

❌ 4. Before High-Impact News (If You’re Inexperienced)

Events like NFP (Non-Farm Payrolls), interest rate decisions, or central bank speeches can cause wild swings. If you’re not a skilled news trader, wait until after the dust settles.

🕰️ Quick Reference Table

🧠 Tips for Timing Your Trades

• 📅 Use an economic calendar to avoid trading during surprise announcements

• 💻 Trade during overlap sessions for better execution and smaller spreads

• 📉 Avoid trading late Fridays or early Mondays — it’s often range-bound and unpredictable

• 🧘‍♂️ Stick to your trading plan and avoid emotional trades during dead hours

✅ Final Thoughts

Choosing the right time to trade forex is just as important as choosing the right strategy. Trade when the market is most liquid and active — and step back when conditions are slow or unpredictable.