Best Time to Trade Forex in 2025: Market Hours and Overlaps Explained

Post by **TheSmartInvestor** » Sat Sep 20, 2025 1:47 pm

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If you’re new to Forex trading, one of the most common questions I see here and there is: “When is the best time to trade forex?” The answer depends on understanding forex market hours, session overlaps, and the currency pairs you’re trading. In this guide, I’ll break down how the forex market works, which time zones matter, and the strategies you can use to catch the most profitable moves in 2025.

1. How the Forex Market Runs 24 Hours

The forex market is open 24 hours a day, 5 days a week. And it doesn’t close like the stock market, but it operates in trading sessions based on the world’s major financial hubs. These are:

Sydney Session: Opens around 10 PM GMT. It’s usually quieter but it actually sets the tone for the Asian markets.
Tokyo Session: Starts at 12 AM GMT. This is where JPY pairs like USD/JPY or EUR/JPY see good action.
London Session: Opens at 8 AM GMT. This is the most liquid session and it cover pairs like GBP/USD and EUR/USD.
New York Session: Starts at 1 PM GMT. U.S. news releases create big volatility, especially on USD pairs.

Do you usually trade the Asian session, London session, or New York session?

2. Session Overlaps: The Most Active Hours

The truth is that the magic happens during session overlaps, when two markets are open at the same time. These periods bring the highest forex trading volume and the tightest spreads to the market.

London + New York (1 PM – 5 PM GMT): The biggest overlap. Most day traders focus here because it’s highly liquid with very huge moves.
Tokyo + London (7 AM – 9 AM GMT): Not as busy, but some opportunities exist, especially for scalping forex.
Sydney + Tokyo (11 PM – 1 AM GMT): Good for AUD/USD.and NZD/JPY pairs.

Have you noticed your forex strategy works better during overlaps, or do you prefer calmer sessions?

3. Factors That Affect the Best Trading Time
Apart from hours, the best time to trade forex depends on your trading style. Here are the best time depending on the traders:

News Traders: These traders focus on economic calendars around London and New York hours. The big news like Non-Farm Payrolls moves the markets very fast.
Scalpers:These traders need high liquidity, so overlaps are very perfect.
Swing Traders: Time isn’t as strict for these traders but they focus on forex charts across days.
Beginners: It's crucial for beginners to start with a London session because it’s the most consistent.

I could remember back in 2023, I tried trading USD/JPY during the Sydney session and there was almost no movement for hours. But during the London-New York overlap? Boom, 40-pip swings in less than 30 minutes. That’s just the difference.

Are you a scalper, day trader, or swing trader? Which session fits your style best?

4. Best Currency Pairs by Session
You have to understand that not all currency pairs move the same during every session. Picking the right one for the right time is key.

Asian Session: USD/JPY, AUD/USD, NZD/JPY.
London Session: GBP/USD, EUR/USD, EUR/GBP.
New York Session: USD/CAD, GBP/USD, EUR/USD.
Cross-Pairs: Less liquid but sometimes explosive, e.g EUR/JPY.

Pro tip: You should trade what’s active. For example, don’t expect EUR/USD to move much during Sydney hours. It’s asleep until London wakes up.

Which currency pairs do you trade the most, and in which session?

5. Common Mistakes About Trading Hours

New traders often misunderstand forex market hours. Here are the top slip-ups I’ve seen:

Trading During Dead Hours: Between 9 PM – 11 PM GMT, liquidity is low and spreads widen. So, you need to avoid it.
Ignoring Time Zones: Forgetting to adjust sessions to your local time. I once thought I was trading in London, but it was actually Tokyo hours. That's actually a rookie mistake.
Forcing Trades: You should know that not every hour is worth trading. Patience saves you a lot of money.

Have you ever traded during a “dead zone” and regretted it?

6. Tools to Track Forex Hours
Thankfully, you don’t need to memorize every forex market session. There are tools that help you to do that. They are:

Forex Market Clocks: These are websites like forexmarkethours.com.
Broker Apps: MetaTrader 4, MetaTrader 5, and cTrader show live session times.
Economic Calendars: Sites like Investing.com help to highlight overlaps and big news releases.

Do you use a [forex session clock], or do you just memorize the hours?

Conclusion: Finding YOUR Best Time

There’s no single perfect forex trading time. It depends on your strategy, currency pairs, and lifestyle. But for most traders, the London-New York overlap is where the biggest opportunities lie. But you should trade liquid hours, not dead hours and focus on pairs that match the session. Also, match your strategy with the right market activity to get the best result.

When do you think is the best time to trade forex in 2025?