Forex markets open and close on a rolling schedule across four major trading sessions, each tied to business hours in a different region

The foreign exchange market does not have a single opening bell or closing time. Instead, it operates across four overlapping sessions: the Asian session (Tokyo), the European session (London), the North American session (New York), and the Pacific session (Sydney). Each session opens when banks and traders in that region start their business day and closes when they stop. Because the world's time zones are staggered, at least one session is always open somewhere, which is why forex trading runs 24 hours a day, five days a week.

The exact times depend on your own time zone and whether daylight saving time is in effect. Most forex brokers and trading platforms display session times in your local time automatically, but understanding the schedule in UTC (Coordinated Universal Time, also called GMT) makes it easier to compare across regions and plan around session overlaps.

Key Takeaways

  • Forex markets operate across four sessions—Tokyo, London, New York, and Sydney—each opening during business hours in that region and closing when the day ends there.
  • The Tokyo session typically runs from 21:00 to 06:00 UTC, London from 08:00 to 17:00 UTC, New York from 13:00 to 22:00 UTC, and Sydney from 22:00 to 07:00 UTC, though exact times shift with daylight saving changes.
  • The London-New York overlap (13:00 to 17:00 UTC) is the busiest trading window because it combines the two largest financial centers and sees the highest trading volume and tightest spreads.
  • Forex markets close entirely on weekends; trading stops Friday evening in New York and does not resume until Sunday evening in Tokyo, creating a gap where no institutional forex trading occurs.
  • Session times shift by one hour twice a year in regions that observe daylight saving time, so you should check your broker's posted schedule in March and November.

The Four Trading Sessions and Their Times in UTC

The Tokyo session (also called the Asian session) runs from approximately 21:00 UTC on one day to 06:00 UTC the next day. Tokyo does not observe daylight saving time, so these times stay the same year-round. This session includes trading activity from Japan, Singapore, Hong Kong, and Australia. Volume is typically lower than in London or New York, but the session often sets the tone for the day because it is the first major session to open after the weekend.

The London session runs from approximately 08:00 to 17:00 UTC. London observes daylight saving time (called British Summer Time), so the session shifts one hour forward in late March and one hour back in late October. This is the oldest and one of the largest forex trading centers in the world. The London session overlaps with the tail end of Tokyo and the beginning of New York, which creates two important trading windows.

The New York session runs from approximately 13:00 to 22:00 UTC. New York observes daylight saving time (called Eastern Daylight Time in summer, Eastern Standard Time in winter), so these times shift one hour in March and November. New York is the largest forex trading center by volume. The session overlaps with London for four hours (13:00 to 17:00 UTC), and this overlap is when the most trading occurs.

The Sydney session runs from approximately 22:00 UTC on one day to 07:00 UTC the next day. Sydney observes daylight saving time (called Australian Eastern Daylight Time), but it shifts on different dates than London and New York, which can create temporary misalignments. This session is smaller than the others and includes trading from Australia, New Zealand, and parts of Asia.

Why the London-New York Overlap Matters Most

The overlap between London and New York, which runs from 13:00 to 17:00 UTC, is the busiest and most liquid trading window in the forex market. During this four-hour window, traders from both the largest forex centers are active at the same time, which means higher trading volume, tighter bid-ask spreads (the difference between the price to buy and the price to sell), and faster order execution.

If you trade during the London-New York overlap, you will typically see more price movement and more trading opportunities. If you trade during the Tokyo session or the Sydney session alone, you may see wider spreads and slower execution because fewer traders are active. Many retail traders deliberately schedule their trading around this overlap for this reason.

The Tokyo-London overlap (from 07:00 to 08:00 UTC) is much shorter and involves fewer traders, so it is less significant. The London-Sydney overlap does not occur because London closes before Sydney opens.

How Daylight Saving Time Changes the Schedule

In late March, London and New York both shift forward one hour for daylight saving time, but they do not shift on the same day. London typically shifts first, which creates a one-week period where London is one hour ahead of its normal UTC offset. A few weeks later, New York shifts, and the overlap returns to its normal time. The same thing happens in reverse in late October and early November.

Sydney shifts to daylight saving time in early October (spring in the Southern Hemisphere) and back in early April, which is different from the Northern Hemisphere schedule. This means that for a few weeks in October and April, the time differences between sessions are not what you might expect.

Your broker's trading platform should automatically display session times in your local time zone and account for daylight saving shifts. However, if you are planning trades around a specific UTC time or comparing times across regions, check your broker's posted session schedule in March, April, October, and November to confirm the current times.

When Forex Markets Close: Weekends and Gaps

Forex markets close entirely over the weekend. The last major session to close is New York on Friday evening (around 22:00 UTC on Friday). The next session to open is Tokyo on Sunday evening (around 21:00 UTC on Sunday, which is Monday morning in Tokyo). This creates a gap of roughly 48 hours where no institutional forex trading occurs.

Some brokers and platforms offer limited trading during the weekend gap through electronic communication networks (ECNs) or other venues, but these are not part of the main interbank forex market. Spreads are typically much wider, liquidity is much lower, and prices can move unpredictably. Most retail traders do not trade during this window.

If you hold a position (an open trade) when the market closes on Friday, it will remain open over the weekend, and you will be exposed to any price gaps that occur when the market reopens on Sunday evening. Some brokers charge a fee or adjust your account for holding positions over the weekend.

How to Find Your Local Session Times

The easiest way to know when each session opens and closes in your time zone is to check your broker's website or trading platform. Most brokers display a session calendar or a clock showing the current session and the time until the next session opens. Some platforms let you set alerts that notify you when a session is about to start.

If you want to calculate session times yourself, start with the UTC times listed above and add or subtract your time zone offset. For example, if you are in Eastern Standard Time (UTC-5), the New York session (13:00 to 22:00 UTC) opens at 08:00 and closes at 17:00 in your local time. If you are in Central European Time (UTC+1), the London session (08:00 to 17:00 UTC) opens at 09:00 and closes at 18:00 in your local time.

Remember to adjust these calculations when daylight saving time changes. Your broker's platform will do this automatically, but if you are tracking times manually, mark your calendar for the daylight saving shifts in March and November.

Trading Volume and Volatility Across Sessions

Trading volume and price volatility vary significantly across the four sessions. The New York session typically has the highest volume, followed by London. The Tokyo session has moderate volume, and the Sydney session has the lowest. Higher volume usually means tighter spreads and faster execution, while lower volume can mean wider spreads and slower fills.

Price volatility also differs by session. The London-New York overlap is often the most volatile because of the high volume and because major economic news from both regions is released during this window. The Tokyo session can be volatile if there is significant news from Japan or Asia, but it is generally calmer than London-New York. The Sydney session is typically the calmest.

If you prefer tighter spreads and faster execution, trading during the London-New York overlap is usually the best choice. If you prefer lower volatility and are willing to accept wider spreads, the Tokyo or Sydney sessions may suit your style better.

Frequently Asked Questions

What time does forex trading start on Monday?

Forex trading resumes on Sunday evening when the Tokyo session opens, which is around 21:00 UTC on Sunday (or Monday morning in Tokyo). In US Eastern Time, this is around 4:00 PM on Sunday. The market then runs continuously through Friday evening in New York.

Can I trade forex at 3 AM?

Yes, you can trade forex at 3 AM in most time zones because at least one session is always open. For example, at 3 AM Eastern Time, the Tokyo session is active. However, spreads may be wider and volume lower than during the London-New York overlap, depending on which session is open at that time.

Why do forex prices sometimes gap over the weekend?

Forex prices can gap over the weekend because no institutional trading occurs between Friday's New York close and Sunday's Tokyo open. If major news is released over the weekend (political events, natural disasters, or economic announcements), the market will open at a different price on Sunday to reflect that news. You will not be able to close a position at Friday's closing price if the market gaps.

Do all forex brokers have the same session times?

Session times are the same across all brokers because they are based on when banks and institutions in each region are open. However, individual brokers may offer slightly different trading hours or may close for brief maintenance windows. Check your specific broker's schedule to confirm their exact hours.

What happens to my open trades when the market closes on Friday?

Your open trades remain open over the weekend, and you will be exposed to any price gaps that occur when the market reopens on Sunday. Some brokers charge a holding fee or adjust your account for weekend positions. Check your broker's policy on weekend trading and overnight fees.