Trading sessions

Trading sessions — These are time intervals during which trading on financial markets is actively conducted. They divide the trading day into separate periods determined by geographical features.

There are several types of sessions in the world:

• Asian Session: Starts in Tokyo. It spreads to other Asian financial centers: Hong Kong and Singapore. It usually has low volatility and less activity, especially at the beginning.
• European Session: Opens in Frankfurt and then moves to London. The market is lively as European and American traders actively participate. Volatility can increase and many currency and stock pairs become active.
• American Session: Begins in New York and extends to North and South America. This is the most active and volatile trading session.
• Pacific Session: This is the period between the close of the American session and the opening of the Asian session. It has low activity.

Successful traders take into account when developing their strategies. The choice of time for trading depends on the goals. The skill of correct session analysis is an important part of successful work.

What time do trading sessions start:

Trading session hours may vary depending on summer or winter time, as well as regional changes.

• Asian:

  Tokyo (Japan): 09:00 - 18:00 local time. Hong Kong: 09:30 - 16:00 local time. Singapore: 09:00 - 17:00 local time.

• European:

  Frankfurt (Germany): 08:00 - 16:30 local time. London (UK): 08:00 - 16:00 local time.

• American:

  New York (USA): 09:30 - 16:00 local time. Chicago (USA): 08:30 - 15:15 local time.

• Pacific:

  Sydney (Australia): 08:00 - 17:00 local time. Tokyo (Japan): 09:00 - 18:00 local time.

There is a period of "session overlap" when two sessions overlap and the market is more active.

European Trading Sessions: When the Market Is Most Active:

The stock and currency markets in Europe play a vital role in the global financial system. Understanding the trading schedule of major European exchanges helps traders plan their entries more effectively, focus on periods of high liquidity, and avoid market lulls.

This is the primary session within the European Union. Most exchanges open at 9:00 AM Central European Time (CET) and operate until 5:30–6:00 PM CET:

• Major active exchanges during this time include:
  • Deutsche Börse (Xetra) — Germany
  • Euronext — covering France, Belgium, the Netherlands, Portugal
  • Borsa Italiana — Italy
  • Madrid Stock Exchange (BME) — Spain
  • Wiener Börse — Austria, among others
• These markets offer trading in stocks, indices, bonds, and derivatives. The morning and midday hours tend to be the most active.
• Forex and Euro Cross Pairs: The Forex market operates 24/5 from Monday to Friday, but the European session is one of the most important. From 9:00 AM to 12:00 PM CET, there is high activity in EUR/USD, EUR/GBP, EUR/JPY, and other major euro pairs.Peak liquidity occurs during the overlap with the U.S. session — from 2:00 PM to 5:00 PM CET.
• Impact of Economic News
  
  Many key macroeconomic reports from the Eurozone are released during the morning CET hours (typically between 10:00 AM and 12:00 PM CET), including:
  • PMI, CPI, ZEW, and IFO indices
  • Speeches by ECB officials
  • Eurostat statistics
  • ECB interest rate decisions (usually Thursdays, around 3:15 PM CET)
• These releases can trigger significant market movements and often shape the trend for the rest of the day.

Takeaway for Traders: The European session is ideal for trading the euro and major European stocks. Monitor the economic calendar and focus your trading during peak activity hours — this can help reduce false signals and improve entry timing.