FNmarkets, like many trading platforms, aligns its operations with the global market sessions driven by the opening and closing hours of major financial centers worldwide. These sessions are important as they affect liquidity, volatility, and spreads in the market. Understanding these sessions is crucial for making informed trading decisions.
Sydney Session (Asia-Pacific):
Opening: This is the first major market to open each day, starting at 10:00 PM GMT.
Peak Activity: The Sydney session sees an overlap with the Tokyo session, which brings increased trading activity.
Tokyo Session (Asian):
Opening: Following Sydney, the Tokyo session opens at 12:00 AM GMT.
Peak Activity: There is an overlap with the Sydney session, but liquidity picks up with major Asian economic releases, affecting currency pairs like JPY and AUD.
London Session (European):
Opening: The London session opens at 8:00 AM GMT and is one of the largest and most liquid markets in the world.
Peak Activity: Liquidity peaks during its overlap with both the Asian sessions and the New York session. European economic reports can drive significant price movements.
New York Session (North American):
Opening: The New York session opens at 1:00 PM GMT, making it one of the most active markets due to its size and economic significance.
Peak Activity: The overlap with the London session is when market volatility and liquidity are at their highest. This is often a key time for trading major currency pairs like EUR/USD.
The overlap periods between these sessions are especially important, as they typically offer:
Higher Liquidity: More market participants, making it easier to enter and exit trades.
Increased Volatility: More price movements can present both opportunities and risks.
Tighter Spreads: The difference between the bid and ask price is often smaller, making it more cost-effective to trade.
Early Morning (Sydney/Tokyo Overlap)
A trader logging in during the late night or early morning (GMT) would observe moderate activity in EUR/USD as the Sydney and Tokyo markets are active. While liquidity is decent, price swings are usually less dramatic than later in the day.
Mid-Morning (London Opens)
As the London session begins, the trading volume for EUR/USD would likely increase significantly. European economic data releases could cause noticeable price movements, offering an opportunity for traders to open new positions.
Afternoon (London/New York Overlap)
This is typically the most active period for EUR/USD. The overlap of the New York and London sessions leads to a surge in liquidity and rapid price fluctuations. Major economic announcements from both Europe and the US during this time can result in strong trends or reversals.
Late Afternoon/Evening (New York Solo)
As the London session closes, the New York session continues. Although the market is still active, liquidity may decrease slightly compared to the overlap period. US economic data or Federal Reserve announcements could still lead to significant market movements.
Night (Quiet Period)
When the New York session ends, the global trading activity typically slows down. This results in lower liquidity and tighter price ranges for EUR/USD until the Sydney session opens the next day.
By understanding the market sessions and their characteristics, FNmarkets users can make more informed decisions on when to enter or exit trades. Identifying the overlap periods is particularly important, as these times often offer higher liquidity, increased volatility, and tighter spreads—critical factors for maximizing trading opportunities and managing risks effectively.