The four major forex sessions

The Sydney session opens first each week, around 21:00 GMT on Sunday. It is the smallest and quietest of the four. The Tokyo session opens around 23:00 GMT and dominates Asian trading hours. The London session opens around 07:00 or 08:00 GMT depending on daylight saving, and is the largest session globally by volume. The New York session opens around 12:00 or 13:00 GMT and overlaps with the second half of London, producing the busiest hours of the trading day.

Two overlaps are particularly important. The Tokyo-London overlap, roughly 07:00 to 09:00 GMT, sees increased liquidity as Asian traders close their day and European traders open theirs. The London-New York overlap, roughly 12:00 to 16:00 GMT, is the most actively traded window of the entire day, with both centres open simultaneously. Most of the largest intraday price moves on major currency pairs occur during this window.

Different pairs see most of their daily range during different sessions. Yen pairs (USD/JPY, EUR/JPY, GBP/JPY) tend to move most during the Tokyo session. Euro and sterling pairs (EUR/USD, GBP/USD, EUR/GBP) see most of their activity during the London session and London-New York overlap. The dollar index and US dollar pairs are most active during the New York session, especially around US economic data releases. Pairs involving the Australian dollar or New Zealand dollar see their largest moves during the Sydney and early Tokyo sessions.

Volatility is not the same as opportunity.

More volatility does not automatically mean more opportunity. The most volatile session is the one where the trader has the best information, the cleanest setups and the right strategy. A scalper benefits from the London-New York overlap. A swing trader may prefer the calmer Asian session to enter positions ahead of European volatility. Match the session to the strategy, not the other way round.

Two windows are often best avoided. The final hour before a major session closes, when liquidity thins and price action becomes choppy. The first 30 minutes after major economic data releases, when spreads widen and volatility spikes unpredictably. Both windows can produce significant moves, but they are difficult to trade with consistent risk control. Many professional traders sit out these windows entirely.