Forex Market Opening Hours Analysis and Optimal Trading Opportunities

Understanding the Global Forex Market Opening Hours

The foreign exchange market operates continuously 24/7, but this does not mean every hour is suitable for trading. In fact, the opening hours of the forex market vary across different sessions, creating periods with significantly different volatility levels.

To better understand, the forex market is divided into four main trading sessions based on geographic regions:

• Sydney Session (representing Oceania)
• Tokyo Session (representing Asia)
• London Session (representing Europe)
• New York Session (representing North America)

Although there are four main sessions, professional traders typically focus on the three peak trading hours: Tokyo, London, and New York. This strategy is called the “3-session system” and helps traders optimize profit opportunities.

A notable statistic: the four largest trading centers (London, New York, Singapore, and Hong Kong) account for up to 75% of global forex trading volume, highlighting the importance of understanding the correct opening times of the forex market.

Detailed Trading Hours Schedule by Vietnam Time

Below is a detailed table of opening and closing times for each session according to Vietnam time:

Sydney Session:

• Summer: opens at 5 AM - closes at 2 PM
• Winter: opens at 4 AM - closes at 1 PM

Tokyo Session:

• Both seasons: opens at 6 AM - closes at 3 PM

London Session:

• Summer: opens at 2 PM - closes at 11 PM
• Winter: opens at 3 PM - closes at 12 AM (midnight)

New York Session:

• Summer: opens at 7 PM - closes at 4 AM next day
• Winter: opens at 8 PM - closes at 5 AM next day

These times are based on official working hours, typically starting between 7-9 AM local time of each market.

Impact of Daylight Saving Time

During March-April and October-November, some countries (United States, United Kingdom, Australia) switch to or from daylight saving time (DST). This shifts the opening hours of the forex market accordingly, requiring traders to update their trading schedules.

Analysis of Overlapping Trading Periods

When two or more sessions open simultaneously, volatility and trading opportunities increase significantly. These are the most notable periods:

###Overlap between London - New York (7 PM-11 PM Vietnam time)

This is the golden period of the forex market. When the two largest financial centers in the world operate at the same time, transactions involving USD (US dollar) and EUR (Euro)—the two strongest currencies—become extremely active.

High price volatility and large trading volumes create many profit opportunities. Major currency pairs like EUR/USD, GBP/USD are most active during this period.

###Overlap between Sydney - Tokyo (6 AM - 1 PM Vietnam time)

Although not as hectic as London-New York, the overlap between the Asian sessions still offers significant trading opportunities. Currency pairs involving the Japanese Yen (JPY) such as EUR/JPY and GBP/JPY show the highest volatility during this time.

###Overlap between Tokyo - London (1 PM - 2 PM Vietnam time)

Lasting only one hour, this period marks the intersection between the end of the Asian session and the start of the European session. Volatility is relatively limited as Asia is about to close. However, currency pairs like EUR/JPY and GBP/JPY still attract trader attention.

Best Days of the Week for Trading

Trading is not always optimal. During a week:

Monday: Markets are usually quiet unless there is significant economic news. Average volatility is about 50% of that on Tuesday, Wednesday, Thursday, and Friday.

Tuesday - Thursday: These days are the most active, with many economic events, political news, and high trading volume, creating the best opportunities.

Friday: Markets are lively in the first half of the day as traders rush to close positions before the weekend. Many traders exit positions to avoid risks if unfavorable news occurs after market hours.

Conclusion: Optimal Trading Hours Strategy

To achieve the highest trading performance, Vietnamese traders should prioritize trading during the overlapping hours of London and New York (7 PM-11 PM Vietnam time), especially on Tuesday, Wednesday, and Thursday. This period combines high volatility, large trading volume, and numerous profit opportunities.

Understanding the opening hours of the forex market and the activity patterns of each session will help you plan smarter trades, thereby maximizing your profit potential.