What Are Forex Market Hours?

Forex market hours run continuously for 24 hours a day, five days a week. The market opens on Sunday evening at 22:00 UTC (Coordinated Universal Time) with the Sydney session and closes on Friday evening at 22:00 UTC after the New York session.

Unlike shares, Forex is not traded through a single central exchange, which is why understanding forex market hours matters so much for retail traders. Instead, trading activity moves between the world's main financial centres as each region opens and closes.

For retail CFD (Contract for Difference) traders, understanding Forex market hours is about more than knowing when positions can be opened or closed. The time of day can directly affect trading costs and market conditions. As liquidity shifts between regions, spreads may widen or narrow, volatility often increases during session overlaps, and the daily rollover period can temporarily reduce liquidity while overnight financing charges may apply to leveraged positions.

Quick Takeaways

• Forex market hours run 24 hours a day, five days a week, with trading activity moving between Sydney, Tokyo, London and New York.
• The London and New York overlap (13:00–17:00 UTC) typically offers the highest liquidity and some of the tightest spreads, although volatility is often higher during this period.
• The daily rollover at 17:00 New York time can temporarily reduce liquidity and lead to wider spreads.
• Although the market trades continuously during the week, prices can still gap when it reopens after the weekend, particularly following major political or economic events.

How Do Global Forex Market Hours Work?

The foreign exchange market is a decentralised global network of banks, financial institutions and retail brokers operating across different time zones, which is exactly why forex market hours differ from the fixed opening and closing times of a stock exchange. Rather than opening and closing through a single exchange, trading activity moves between the world's major financial centres as each session begins and ends.

This continuous market means traders can open and close positions on currency pairs at almost any time during the working week. If you're new to the market, understanding what is CFD trading can also help explain how retail traders access the forex market through brokers.

However, market conditions during forex market hours are not the same throughout the day. Liquidity, spreads, execution quality and price volatility all vary depending on which financial centres are active. As a result, the cost of trading the same currency pair can differ significantly from one session to another.

The Four Major Forex Trading Sessions Explained

Forex market hours are divided into four main trading sessions that account for most global market activity. Although smaller regional markets also operate, these four financial centres shape the flow of trading throughout the day.

Sydney Session (22:00–07:00 UTC)

The Sydney session marks the start of the trading week within forex market hours. Overall market liquidity is generally lower than during later sessions, although currency pairs involving the Australian Dollar (AUD) and New Zealand Dollar (NZD) often experience greater trading activity.

Tokyo Session (00:00–09:00 UTC)

Also known as the Asian session, the Tokyo session typically sees higher trading volumes in the Japanese Yen (JPY). Major European and US currency pairs generally experience lower volatility during these hours.

London Session (08:00–17:00 UTC)

London remains the world's largest foreign exchange trading centre, accounting for around 37.8% of global foreign exchange trading in 2025, according to the Bank of England's results of the BIS Triennial Survey. High liquidity during this session often results in tighter spreads and strong trading activity across the major currency pairs.

New York Session (13:00–22:00 UTC)

The New York session is heavily influenced by US economic data releases. As the US Dollar is involved in every major currency pair, market volatility often increases, particularly during the first half of the session.

If you're learning what is Forex trading, understanding forex market hours and these trading sessions is an important first step. It is also worth keeping track of Daylight Saving Time (DST), as seasonal clock changes can temporarily alter how local trading hours align with UTC.

Session Overlaps: When Liquidity and Volatility Peak

The most active periods within forex market hours occur when two major trading sessions overlap, bringing together liquidity from multiple financial centres. The most important overlap is between the London and New York sessions, which runs from approximately 13:00 to 17:00 UTC.

During these four hours, the world's two largest foreign exchange trading centres are active at the same time. Higher trading volume typically leads to deeper liquidity and tighter spreads, which can help reduce trading costs when opening or closing a position. At the same time, many key US economic data releases take place during this period, often leading to increased market volatility.

For traders who apply SMC trading (Smart Money Concept) strategies, the London-New York overlap is often the period they watch most closely, since higher liquidity during these hours can make institutional order flow easier to identify.

Although tighter spreads can improve trade execution, faster price movements also increase risk. For traders using leverage, market conditions can change quickly, particularly following major economic announcements. Effective risk management is therefore essential during the London-New York overlap, as rapid price movements can lead to significant losses as well as potential gains.

The Hidden Cost Trap: Daily Rollover and Weekend Gaps

The daily rollover window, one of the most important points within forex market hours to understand, occurs at 5:00 pm New York time, when overnight financing charges are applied to positions that remain open. Liquidity also tends to decline during this period, which can result in wider spreads and less favourable trading conditions.

At the New York close, before the Tokyo session becomes fully active, many liquidity providers reduce their activity while brokers process the daily rollover. During this time, overnight swap charges may be credited or debited to leveraged positions held beyond the trading day. Wider spreads can also increase the cost of opening or closing a position.

Temporary spread widening during the rollover period may trigger stop-loss orders, even when the underlying market has moved very little. This is one reason why many traders avoid opening or managing short-term positions around the daily rollover.

Although the Forex market operates continuously during the working week, it offers no protection against weekend gaps. If a major geopolitical or economic event occurs while the market is closed, prices may reopen significantly above or below Friday's closing level. In these situations, stop-loss orders may be executed at the next available price rather than the specified level, resulting in greater losses than expected.

Conclusion

Forex market hours influence far more than when you can open or close a position. They also affect trading costs, liquidity and market volatility throughout the trading day. Understanding how different sessions, session overlaps and the daily rollover work can help you choose the most suitable time to trade and manage risk more effectively.

Whether you're trading during the London–New York overlap or holding positions overnight, being aware of forex market hours and changing market conditions can help you make more informed trading decisions. If you're comparing brokers, our CFD broker reviews examine trading costs, spreads and other key features to help you understand how different providers compare.