If you are a new trader, you likely chose the foreign exchange market for its 24-hour accessibility. However, the market does not just “start” at a single time like a local grocery store. It operates through a relay system of global financial hubs. Understanding what time the forex market opens is the first step in moving from a casual learner to a disciplined trader.
The market remains open five days a week, but the level of activity shifts every hour. To trade effectively, you must know when banks and institutions in different time zones start their workdays. This guide breaks down the specific hours, sessions, and overlaps you need to know to find the best trading opportunities.
What Time Does Forex Start?
For most of the world, the forex week begins on Sunday evening. The market officially starts when the first major financial hub in the Asia-Pacific region opens for business.
While the “opening” is a continuous cycle, the week begins in New Zealand and Australia. For traders using Greenwich Mean Time (GMT), the week starts at 10:00 PM GMT on Sunday. If you are following Eastern Standard Time (EST), the market starts at 5:00 PM EST on Sunday.
The 24-Hour Market Cycle
Forex is a decentralised market. There is no central building that closes its doors at night. Instead, trading moves from one major city to the next:
- Sydney starts the cycle.
- Tokyo joins shortly after.
- London brings the highest volume in the morning.
- New York finishes the day before the cycle repeats.
When Does the Forex Market Open?
The market is divided into four main trading sessions. Each session has a unique “personality” based on the currencies traded and the volume of participants.
The Sydney Session
This is the official start of the global trading day.
- Open: 10:00 PM GMT (Sunday)
- Close: 7:00 AM GMT
- Characteristics: This session is generally the quietest. It focuses on the Australian Dollar (AUD) and New Zealand Dollar (NZD). Liquidity is lower, meaning prices might move in small ranges unless there is major news from the region.
The Tokyo Session (Asian Session)
Tokyo is the first major Asian hub to enter the market.
- Open: 12:00 AM GMT
- Close: 9:00 AM GMT
- Characteristics: The Japanese Yen (JPY) is the star here. This session accounts for about 20% of all forex trading volume. Commercial hedgers and central banks are the primary movers during these hours.
The London Session (European Session)
London is widely considered the capital of the forex world.
- Open: 8:00 AM GMT
- Close: 5:00 PM GMT
- Characteristics: More than 35% of all daily trades happen during this window. Because London is the biggest hub, volatility is high, and spreads are often at their narrowest.
The New York Session (North American Session)
The final leg of the daily cycle is dominated by the US Dollar.
- Open: 1:00 PM GMT
- Close: 10:00 PM GMT
- Characteristics: As the US Dollar is involved in roughly 88% of all trades, this session is vital. It starts with a burst of energy as it overlaps with London, creating the busiest period of the day.
Identifying the Best Time to Trade
Knowing what time the forex market opens is only half the battle. You must also know when the sessions overlap. An overlap occurs when two major sessions are open at the same time. This leads to higher liquidity, meaning you can enter and exit trades more easily.
|
Overlap Period |
Hours (GMT) | Best Currency Pairs |
| London & New York | 1:00 PM – 5:00 PM | EUR/USD, GBP/USD, USD/CHF |
| Sydney & Tokyo | 12:00 AM – 7:00 AM | AUD/JPY, NZD/JPY, AUD/USD |
| Tokyo & London | 8:00 AM – 9:00 AM |
EUR/JPY, GBP/JPY |
The London and New York overlap is the most popular time for traders. During these four hours, the market sees massive volume and significant price movements.
Why Market Opening Times Matter for Beginners
If you trade when the market is “quiet,” such as the late Sydney session, you may struggle with slow price movement. This makes it harder to hit your profit targets. Conversely, trading during a session open—like the London open—can be fast and unpredictable.
As a learner, your goal is to match your strategy to the session.
- Trend Traders: Often prefer the London or New York sessions because price moves are more sustained.
- Range Traders: May prefer the Tokyo session, where prices often move between clear support and resistance levels.
Summary
To succeed in this market, you must respect the clock. The forex market opens at 10:00 PM GMT on Sunday and remains active until 10:00 PM GMT on Friday. While you can trade at 2:00 AM or 2:00 PM, the quality of your trade setup depends on which financial hubs are active. Focus your energy on the London and New York sessions to take advantage of the best price action and the lowest costs.
FAQs
Is the forex market open on weekends?
No. The forex market is closed to retail traders on Saturdays and Sundays. It closes on Friday at 5:00 PM EST and reopens on Sunday at 5:00 PM EST. Some brokers may show price movement on weekends, but this is usually low-volume activity.
Does the market open at the same time during holidays?
Major global holidays like Christmas and New Year’s Day will close the market entirely. On smaller national holidays (like a bank holiday in Japan), the global market stays open, but liquidity for that specific currency (like the JPY) will be much lower.
Why are the opening times different in the summer and winter?
Forex hours shift because of Daylight Saving Time. Many countries move their clocks forward or backwards by one hour in March and October/November. You should check your broker’s platform to see how these shifts affect your local trading time.
What is the most volatile time to trade?
The most volatile time is the overlap between the London and New York sessions (1:00 PM to 5:00 PM GMT). This is when the two largest groups of market participants are active simultaneously.
Can I trade when only one market is open?
Yes, you can trade at any time between Sunday night and Friday night. However, if only one minor market is open, the price may not move enough for you to make a profit after paying the spread (the broker’s fee).
