What are forex trading sessions?

Forex trading sessions refer to the specific periods during the 24-hour cycle when major financial markets are open for business. Because currency trading occurs globally, these sessions allow participants to trade around the clock from Sunday evening to Friday afternoon. The market is divided into four primary sessions based on the major financial hubs: Sydney, Tokyo, London, and New York. The Sydney session begins at 10:00 PM GMT. The Tokyo session follows at 12:00 AM GMT. The London session opens at 8:00 AM GMT, and the New York session starts at 1:00 PM GMT. These times shift slightly depending on daylight savings adjustments in various countries. Market liquidity and volatility often increase when sessions overlap. For example, the London and New York overlap between 1:00 PM and 4:00 PM GMT typically sees the highest trading volume of the day. Traders monitor these windows to identify periods of increased price movement. Trading involves significant risk, and market conditions can change rapidly during session transitions. Beginners should understand that high volatility during overlaps can lead to sudden price swings, which may impact account balances quickly.