The Three Trading Sessions: Asian, London, New York

Forex trades 24 hours a day because it moves through three overlapping sessions: Asian (centered on Tokyo), London, and New York. Each session tends to favor different currency pairs based on which region's banks and institutions are active.

The London session is generally the most active for EUR and GBP pairs, while the New York session drives a lot of USD-related volume. The overlap between London and New York is often the most volatile window of the day.

The Asian session, by contrast, tends to be quieter and more range-bound, which suits different strategies than the sharper breakouts more common during the London/New York overlap. Knowing which session you're trading in helps set realistic expectations for how much a pair is likely to move.