Despite the large trading volume and liquidity, the forex market encourages traders to maximize their profit potential by allowing them to trade at any time of the day. Unlike other financial markets, the forex market never sleeps, and as such, you have to find the best trading hours in your specific time zone. If you live in any part of the Asian continent, then keep reading to discover the best time to trade Forex in each Asian country.
The Four Forex Market Trading Sessions
The forex market has four major trading sessions. Each session is unique to a specific time zone, with varying levels of liquidity for the different forex pairs.
London Session
The London session is a highly volatile and liquid trading session due to the high volume of commercial activities that occur in this session. London is also known as the forex capital of the world because over 40% of the daily forex transactions occur in the London session.
The session begins as the Asian session closes, and the late London session overlaps with the New York session. As a result, most forex pairs are highly volatile in the London session, but the British Pound often makes the most notable price swings in this session.
New York Session
The New York session begins at 8 am EST as the New York traders move into their workplaces. The start of this session overlaps with the London session, just after the ‘London lunch.’ The United States has the largest economy globally, with major financial institutions present.
Therefore, the New York session is characterized by a high trading volume and liquidity. In addition, the session volatility can be influenced by the release of news and economic data about the United States.
Sydney Session
The Sydney session is the first session of every trading day, and the best currencies to trade are the Australian dollar, New Zealand dollar, Japanese Yen, and the United States dollar.
This session has a significant level of liquidity and overlaps with the Tokyo session to form the Asian session.
Tokyo Session
The Tokyo session is dominated by trading activities in Asian countries, including Japan, the Philippines, Singapore, Hong Kong, etc.
The session is often less liquid than London and New York but still provides significant price swings in Japanese Yen, Australian dollar, and New Zealand dollar cross pairs.
Why Is The Forex Market Always Open?
The forex market never sleeps because the overlap of different trading sessions provides a constant supply of liquidity and volatility for traders worldwide. The four major trading sessions overlap to form a loop that repeats every trading day. Starting with the Sydney session to the Tokyo session, then London, and finally the New York session.
When is the best time to trade in the Forex Market?
The best time to trade forex is during the session overlaps. The overlap of two sessions increases the liquidity and trading volume in the forex market, which helps traders make a lot of profit in little time due to the increased volatility. The Sydney and Tokyo sessions overlap to form the Asian session, which is more liquid than the individual sessions. The Asian session close overlaps with the London session open and increases the liquidity of this trading period. The London session’s close overlaps with the heart of the New York session and tends to produce significant price movements. The New York session close is followed by the Sydney open, but this period is less volatile because it starts a new trading day.
When should you avoid Forex Market trading?
Making profits in the forex market doesn’t require you to trade daily. Even if you’re a day trader, you shouldn’t be trading every day. Only trade when the market environment is favorable, and your trading criteria have been met. Here are three conditions in which you should avoid trading the forex market.
High-Impact News Releases
High-impact news are significant news events that tend to produce massive (and often random) price fluctuations in the forex market.
These are often released at predetermined times of the day and include news like interest rate announcements, election results, unemployment data, etc.
Holidays
Bank holidays are usually characterized by low trading volume and volatility. Most forex pairs don’t move significantly these days, and they also become difficult to trade and predict.
Low Trading Volume
Besides holidays and festive periods, some times of the day have reduced trading volumes. The close of the New York session is usually followed by the start of a new trading day. During this period, the forex market hardly makes significant moves and tends to accumulate orders in tight trading ranges before the volatile trading sessions commence.
Forex Market Hours For Each Asian Countries
Here are the forex trading hours for each Asian country.
Philippines
London: 3 p.m. to 12 a.m.
New York: 8 p.m to 4 a.m.
Sydney: 5 a.m. to 2 p.m.
Tokyo: 7 a.m. to 4 p.m.
Best Time to Trade Forex In the Philippines
As explained earlier, the best time to trade forex is during session overlaps. Hence, the best times to trade in the Philippines are;
- 4 pm: Overlap of Tokyo and London
- 8 pm: Overlap of London and New York
Malaysia
London: 3 p.m. to 12 a.m.
New York: 8 p.m. to 4 a.m.
Sydney: 5 a.m. to 3 p.m.
Tokyo: 7 a.m. to 4 p.m.
Best Time to Trade Forex In Malaysia
Therefore, the best times to trade forex in Malaysia are;
- 4 pm: Overlap of Tokyo and London
- 8 pm: Overlap of London and New York
India
London: 12:30 p.m. to 8:30 p.m.
New York: 5:30 p.m. to 2:30 a.m.
Sydney: 2:30 a.m. to 12:30 p.m.
Tokyo: 4:30 a.m. to 1:30 p.m.
Best Time to Trade Forex In India
If you’re in India, then you should consider trading during the session overlaps;
- 1:30 pm: Overlap of Tokyo and London
- 5:30 pm: Overlap of London and New York
China
London: 3 p.m. to 12 a.m.
New York: 8 p.m. to 4 a.m.
Sydney: 5 a.m. to 3 p.m.
Tokyo: 7 a.m. to 4 p.m.
Best Time to Trade Forex In China
Therefore, the best times to trade forex in China are;
- 4 pm: Overlap of Tokyo and London
- 8 pm: Overlap of London and New York
Japan
London: 4 p.m. to 12 a.m.
New York: 9 p.m. to 5 a.m.
Sydney: 7 a.m. to 3 p.m.
Tokyo: 8 a.m. to 4 p.m.
Best Time to Trade Forex In Japan
If you’re in Japan, the best time to trade forex is during session overlaps. Hence, the best trading hours in Japan are;
- 4 pm: Overlap of Tokyo and London
- 9 pm: Overlap of London and New York
Indonesia
London: 2 p.m. to 10 p.m.
New York: 7 p.m. to 3 a.m.
Sydney: 5 a.m. to 1 p.m.
Tokyo: 6 a.m. to 2 p.m.
Best Time to Trade Forex In India
Therefore, the best times to trade forex in Indonesia are;
- 2 pm: Overlap of Tokyo and London
- 7 pm: Overlap of London and New York
Singapore
London: 3 p.m. to 12 a.m.
New York: 8 p.m to 4 a.m.
Sydney: 5 a.m. to 2 p.m.
Tokyo: 7 a.m. to 4 p.m.
Best Time to Trade Forex In Singapore
The best times to trade in Singapore are;
- 4 pm: Overlap of Tokyo and London
- 8 pm: Overlap of London and New York
4 Factors To Consider Before Choosing a Session to Trade
The Nature of Your Forex Pairs
Forex pairs are in constant motion because the value of every currency fluctuates throughout the day. However, the extent of price movement varies across all pairs and trading sessions. The Asian session is often characterized by substantial price swings in the currency pairs containing the Australian dollar, New Zealand dollar, and Japanese yen. This is because these currencies are actively traded in these sessions compared to others. \
Before deciding which session to trade, find out the trading hours for the currencies that comprise your favored pairs. If you’re trading currency pairs containing the British Pound, London or New York session will provide ample trading opportunities. Currency pairs like AUD/JPY, however, will be more volatile than major pairs in the Asian session.
Your Trading Strategy
Some trading strategies, theories, and indicators indeed favor specific market conditions. A significant number of forex pairs tend to consolidate in tight ranges during the Asian session due to the low liquidity and trading volume.
If you trade with a trend-following strategy, trading these range-bound pairs in the Asian session can be extremely difficult. Hence, you can trade them in the more volatile and trending market environment provided by the London and New York sessions.
News and Fundamental Analysis
The session you trade can be determined by the news and economic data that will be released on a trading day. You may need to avoid high-impact news in one session or take advantage of medium-impact news in another. Whatever the case might be, you should examine the imminent news reports before choosing a session to trade.
Your Schedule
Trading is a business, but it shouldn’t feel like a burdensome chore.
Before choosing a session to trade, ensure that it fits into your schedule. Take advantage of the 24-hour access to the Forex market today!
Start Trading Forex Today with Decode Global!
Now that you understand the best time to trade in each country, it’s time to put this information into action. When done correctly, forex trading can be a profitable venture, and DecodeFX offers the perfect forex trading platform for beginners and experienced traders alike. With our user-friendly interface, educational materials, and expert support team, you’ll be on your way to successful currency trading in no time! Start trading Forex today!