The forex market is a global network of banks and financial institutions. It does not have a single physical location. Instead, it operates digitally across different time zones. This structure allows for 24-hour trading during the week. For a new trader, the main question is: what time does the forex market open?
The market officially opens on Sunday at 5:00 PM EST (10:00 PM GMT). It remains active until it closes on Friday at 5:00 PM EST (10:00 PM GMT). While the market is technically open all week, activity levels vary. Trading volume depends on which global financial hub is currently conducting business.
Understanding these cycles helps you identify the periods with the most price movement. In this article, we break down the specific hours for each major session and explain why timing is a vital part of your strategy.
The Weekly Cycle: What Time Does Forex Start?
The trading week starts in the Asia-Pacific region. Because of the international date line, Monday morning in Sydney happens while it is still Sunday afternoon in New York.
The Sunday Opening
When people ask what time does forex start, they are usually referring to the Sunday evening open. At 5:00 PM EST on Sunday, the Sydney session begins. This is the first time prices have moved after the weekend break.
During the first few hours of the Sunday open, trading volume is often low. Major banks in Europe and the US are still closed. Consequently, spreads—the cost of trading—may be wider than usual. Many experienced traders wait for the Tokyo or London sessions to begin before they place trades.
The Friday Closing
The market week ends on Friday at 5:00 PM EST when the New York session closes. Liquidity often drops in the final hours of Friday. Traders frequently close their positions before the weekend to avoid “gaps.” A gap occurs when the price on Sunday opens at a significantly different level than the Friday close.
The Four Major Trading Sessions
The 24-hour market is divided into four main blocks. Each block is named after a major financial city. Knowing when the forex market opens in each region allows you to target specific currency pairs.
The Sydney Session (Pacific)
Sydney is the first major hub to open. It marks the start of the trading day.
- Hours: 5:00 PM – 2:00 AM EST
- Characteristics: This session is generally quiet. It is a good time for traders who prefer low volatility.
- Active Pairs: AUD/USD, NZD/USD, and AUD/JPY.
The Tokyo Session (Asian)
Tokyo opens shortly after Sydney. This session provides a better look at the market sentiment for the day.
- Hours: 7:00 PM – 4:00 AM EST
- Characteristics: Volume is higher than the Sydney session. The Japanese Yen (JPY) is the most traded currency during these hours.
- Active Pairs: USD/JPY, EUR/JPY, and AUD/JPY.
The London Session (European)
London is the most important session for global forex. It accounts for more than 30% of all daily trades.
- Hours: 3:00 AM – 12:00 PM EST
- Characteristics: This session has very high liquidity and volatility. Prices move fast, and spreads are usually narrow.
- Active Pairs: EUR/USD, GBP/USD, and EUR/GBP.
The New York Session (North American)
The final session involves the US Dollar, which is the most traded currency in the world.
- Hours: 8:00 AM – 5:00 PM EST
- Characteristics: The morning is extremely active because it overlaps with London. The afternoon becomes quieter as European traders finish their day.
- Active Pairs: EUR/USD, GBP/USD, USD/JPY, and USD/CAD.
Market Overlaps: The Prime Trading Windows
The most important concept regarding when the forex market opens is the “overlap.” This happens when two major sessions are open at the same time. During an overlap, the number of buyers and sellers increases.
The London-New York Overlap (8:00 AM – 12:00 PM EST)
This is the four-hour window where the two largest financial centres are both active. It is the most liquid time of the day. Most major news releases from the US happen at the start of this period. If you want high volatility and tight spreads, this is the best time to trade.
The Tokyo-London Overlap (3:00 AM – 4:00 AM EST)
This is a short one-hour window. It is less active than the London-New York overlap but often sees a shift in trends as European traders react to the Asian session’s price moves.
The Sydney-Tokyo Overlap (7:00 PM – 2:00 AM EST)
This period covers most of the Asian trading day. It is a stable period for those focusing on Pacific currencies like the Australian Dollar or the New Zealand Dollar.
Factors That Shift Trading Hours
While the sessions follow a general pattern, a few factors can change exactly when the forex market opens for you locally.
Daylight Saving Time (DST)
The US, UK, and parts of Australia move their clocks forward or backwards twice a year. Japan does not use Daylight Saving Time. Because these regions do not change their clocks on the same dates, the session overlaps can shift by one hour during the spring and autumn. You should always use a “forex market clock” tool to confirm the current active session in your time zone.
Market Holidays
Forex is a decentralised market, so it rarely closes entirely on a weekday. However, liquidity drops significantly on major holidays.
- New Year’s Day: Global markets are closed.
- Christmas Day: Global markets are closed.
- National Holidays: If it is a bank holiday in the UK, the London session will have very low volume, even if the New York session is open.
Summary of Trading Hours
The table below shows the opening and closing times for the four major sessions in Eastern Standard Time (EST) and Greenwich Mean Time (GMT).
| Session | Open (EST) | Close (EST) | Open (GMT) | Close (GMT) |
| Sydney | 5:00 PM | 2:00 AM | 10:00 PM | 7:00 AM |
| Tokyo | 7:00 PM | 4:00 AM | 12:00 AM | 9:00 AM |
| London | 3:00 AM | 12:00 PM | 8:00 AM | 5:00 PM |
| New York | 8:00 AM | 5:00 PM | 1:00 PM | 10:00 PM |
Conclusion
Knowing what time the forex market opens allows you to build a professional routine. You do not need to sit at your computer for 24 hours. Instead, you can choose the session that fits your lifestyle and your strategy.
For many learners, the London and New York sessions offer the best conditions. These hours provide the liquidity needed to enter and exit trades easily. If you prefer a slower pace, the Tokyo session is an excellent alternative. Always remember that the start of the week on Sunday and the end on Friday are the times when the market is most unpredictable.
FAQs
What time does the forex market open on Sunday?
The market opens at 5:00 PM EST (10:00 PM GMT) on Sunday. This is when the Sydney session starts the new trading week.
Can I trade forex on a Saturday?
No. Retail forex brokers close their platforms on Friday evening (5:00 PM EST) and do not reopen them until Sunday evening. The market is inactive during the weekend.
What is the busiest time to trade forex?
The busiest period is the overlap between the London and New York sessions. This happens between 8:00 AM and 12:00 PM EST.
Does the forex market close for lunch?
No. Unlike some stock exchanges, the forex market does not close for lunch. However, trading volume often dips during the local lunch hour in major cities like London or New York.
Why is liquidity low during the Sydney session?
Liquidity is lower because Sydney is a smaller financial hub compared to London or New York. Most major global banks in Europe and the US are closed during these hours, resulting in fewer participants.
