- Reviewed by James Stanley, Nov. 24, 2021
There are three major forex trading sessions which comprise the 24-hour market[1]: the London session, the US session and the Asian session. Each major geographic market center can exhibit vastly unique traits and tendencies that can allow traders to effectively execute strategies at any time.
Although the forex market is the most liquid of all asset classes, there are periods whereby volatility is constant, and others subdued. Understanding these different forex session times can improve the reliability of a forex trading strategy.
In this article, we will explore each of these forex market sessions including their key characteristics – forex time zones and how they affect trading.
What are the main forex trading sessions?
Customarily, the forex market is divided into three market sessions:
The forex market is seen as highly functional/dynamic during these trading sessions as major banks, institutions and retail traders are operational. Noting the specific times of each trading session will assist forex traders in developing their trading strategies around this data.
|
SESSION |
MAJOR MARKET |
TIME (GMT) |
|
US |
NEW YORK |
13:00 - 22:00 |
|
ASIAN |
TOKYO |
00:00 - 09:00 |
|
EUROPEAN |
LONDON |
08:00 - 17:00 |
Asian trading session
Tokyo is the first forex session to open, and many large participants use the trade momentum In Asia to develop their strategies and utilise as a gauge for future market dynamics. Approximately 6% of the world's FX transactions are enacted in the Asian trading session.
European trading session
London is the largest and most important forex trading session in the world, with roughly a 34% market share of the daily forex volume[2]. Most of the world's largest banks keep their dealing desks in London because
