Understanding Forex Trading Sessions and Hours

The Forex market operates continuously 24 hours a day, five days a week. However, the market’s activity and liquidity levels vary throughout the day, depending on the different sessions. Learn more about the trading hours in the Forex market and see if your trading session is affecting your trading results.

First of all, MetaTrader terminal time

Before we dive into the trading sessions, we need to check the MT terminal time available to us. On Headway, the MetaTrader terminal time is in the GMT+3 time zone. 

On the desktop, you will find the terminal time in the Market Watch window.

On mobile, you need to go to the Quotes screen. The terminal time will be displayed below the symbols of trading instruments.

Main trading sessions

Generally speaking, there are five trading days during the working week in the Forex market. But each day has several trading sessions named after the activity center (usually a specific market/city) according to the time zone. Traders usually distinguish four time-zoned trading sessions:

Sydney session. This session marks the start of a new trading day in the global Forex market. During this period, financial instruments involving the Australian Dollar are actively traded.

Asian session. During this time, there is typically lower trading volume and volatility since many of the major global financial centers are closed.

European session. It is known for its high trading volume and volatility due to London being the largest financial center globally, and other significant financial centers also being open during this period.

North American session. This period is known for its high volatility and trading volume due to New York being the second-largest financial center globally. Many other significant financial centers are open at this time, contributing to the high level of activity.

Overlapping sessions. During certain periods, there are overlapping trading sessions where two sessions are active simultaneously. For example, there is an overlap between the European and North American sessions, which occurs from 12:00 p.m. GMT to 04:00 p.m. GMT. This period is known for its heightened volatility and increased trading volume.

How to find a trading session suitable for you?

Many factors influence you when you are selecting a trading session. Your choice should be relevant to your trading style, preferred currency pairs, and current market conditions. 

Trading style. Day traders should prioritize the European or North American sessions due to their high volatility and trading volume. Meanwhile, swing traders should favor the Asian session, which boasts lower volatility and trading volume.

Currency pairs. If your focus is on trading the Australian dollar (AUD) and the New Zealand dollar (NZD), they might find it more beneficial to trade during the Asian session since these currencies are more active during that time.

Market conditions. Keep an eye out for major news events or economic releases that may occur during a particular session, as the market may become more volatile and present more trading opportunities.

Personal preference. You have the full right to select a trading session based on your likes or availability. For instance, if you live in UAE, opt for the European session. And it will be much more convenient to trade in the North American session if you live in Brazil. 

The most and least profitable hours in the Forex market

The best and worst times to trade Forex depend on a trader’s strategy and the currency pairs they are trading. Here are some general guidelines:

The most profitable hours to trade happen:

During the European and North American sessions. These hours have the highest trading volume and liquidity, which means tighter spreads and lower slippage. This period typically occurs from 12:00 p.m. to 04:00 p.m. GMT, when the European and North American sessions overlap.

During major economic releases. Economic releases such as the Non-Farm Payrolls report, GDP, and inflation data can cause significant volatility in the market, which can create trading opportunities.

During periods of high volatility. Some traders prefer high volatility because it can create opportunities for larger profits. This can occur during news releases or periods of geopolitical uncertainty.

The least profitable hours to trade are usually:

During the Asian session that is characterized by lower trading volume and liquidity, which can result in wider spreads and higher slippage.

During holidays. Trading volume is typically lower during holidays, which can result in lower liquidity and wider spreads.

Late Friday and early Sunday. Trading volume tends to be lower during this time, which can result in wider spreads and higher slippage.

Follow us on social media (Telegram, Instagram, Facebook) to get the Headway updates instantly.