The Tokyo session is particularly important for currency pairs involving the Japanese Yen, such as USD/JPY, EUR/JPY, and AUD/JPY. These pairs tend to be most active during this session due to the participation of Japanese traders and institutions.

Important economic data and news releases related to Japan are often scheduled during the Tokyo session, particularly at the beginning of the trading day.

Although not as liquid as the London or New York sessions, the Tokyo session still offers decent liquidity. This liquidity often arises from Japanese banks and institutions participating in the forex market, as well as traders from other parts of Asia, including Singapore and Hong Kong.

Active Hours

The Tokyo session marks the beginning of the trading day in Asia. It opens at 11:00 PM GMT (Greenwich Mean Time) and closes at 8:00 AM GMT. This session largely overlaps with the Sydney trading session, with a few hours of exclusive Tokyo trading.

The London session is a major trading session that often opens with major market news reaching the market. The London session often witnesses the release of important economic data and news announcements, not only for the United Kingdom but also for the entire European Union.

This can lead to increased volatility and more profitable trading opportunities. Many of the world's major currency pairs, including the EUR/USD, GBP/USD, and USD/JPY, are most actively traded during the London session. This session's dominance in trading these pairs often leads to increased price movements and trading opportunities.

The London session is known for its high liquidity. It overlaps with the end of the Asian session and the beginning of the New York session, making it a time when a significant volume of trading activity occurs.

High liquidity is favorable for traders as it generally results in tighter spreads and reduced slippage.

Active Hours

The London trading session typically opens at 8:00 AM GMT (Greenwich Mean Time) and closes at 4:00 PM GMT. However, it's important to note that the session time may vary depending on daylight saving time (DST) changes. During DST, London operates on British Summer Time (BST), which is GMT+1. So, the session would open at 8:00 AM BST and close at 4:00 PM BST.

The New York trading session in forex, also known as the North American session, is one of the major trading sessions in the global foreign exchange market.

The New York session is known for its high liquidity, primarily due to the substantial trading activity in the United States. It often has the highest trading volume of all the forex trading sessions, making it a prime time for many traders.

Many of the world's major currency pairs, including EUR/USD, GBP/USD, and USD/JPY, are particularly active during the New York session. This activity can lead to more significant price movements and trading opportunities.

Active Hours

The New York session typically opens at 1:00 PM GMT (Greenwich Mean Time) and closes at 10:00 PM GMT. However, it's important to note that the session times may vary slightly due to daylight saving time (DST) changes. During DST, New York operates on Eastern Daylight Time (EDT), which is GMT-4, and the session would open at 1:00 PM EDT and close at 10:00 PM EDT.

• The global forex market is active 24/7, with millions of traders entering the market every day 
• The three major forex sessions, Tokyo, London, and New York, exist due to time zone and regional differences 
• These sessions can overlap for a few hours at a time, which leads to heightened liquidity and activity on the global forex market 
• Major currency pairs are especially active during the three major sessions, such as GBP/USD, EUR/USD, USD/JPY, and more