Market Analysis6 min read

Forex Trading Sessions: When to Trade (and When Not To)

Forex is open 24/5 but not all hours are equal. Learn the trading sessions and when liquidity is highest. London, New York and Asian hours compared for.

The Three Major Sessions

  • Asian (Tokyo): 02:00-11:00 SAST — lowest liquidity, tightest JPY spreads, best for AUD/JPY, NZD/JPY
  • London: 10:00-19:00 SAST — highest liquidity, tightest EUR/GBP spreads, best for EUR/USD, GBP/USD
  • New York: 16:00-01:00 SAST — second highest liquidity, best for USD pairs

The London/NY Overlap

16:00-19:00 SAST is the golden window — both London and New York are open. This is when liquidity is highest, spreads are tightest, and the biggest moves happen. If you can only trade 2 hours per day, trade 16:00-18:00 SAST.

When NOT to Trade

  • Friday after 22:00 SAST — weekend gap risk
  • Sunday open (first 1-2 hours) — spreads are wide and liquidity thin
  • Major news releases (unless you have a news strategy)
  • Holiday sessions (Christmas, Thanksgiving) — low liquidity and unpredictable moves

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Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.

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