When Can You Trade Forex?

Looking at the chart of average pip range for the major pairs for each day of the week, it would probably be best to trade during the middle of the week, since this is when the most action happens.

The forex market can be broken up into four major trading sessions: Sydney, Tokyo, London and the New York session.

A large chunk of forex transactions taking place leads to high liquidity and potentially lower transaction costs, i.e., lower pip spreads.

An advantage in forex trading is the ability to trade for twenty four hours each day throughout the week.

There are no open sessions on the weekend. Trading starts when the Sydney session opens at the beginning of the week and finishes when the New York session closes at the end of the week.

A huge number of traders are active in the market during the European session. Because day traders are exiting positions in Asia and entering positions in Europe, the fluctuations are bigger than in the Asian session alone.
Dealing during the London session is an excellent way to ensure you're trading in a very liquid market.

When trading periods overlap, there are significantly more traders trading in the market, resulting in more activity.
Higher liquidity implies that slippage is less likely, orders are more likely to be filled, and currency pair spreads are minimized. These are usually favorable moments to trade.

When trading forex at particular periods, exercise extreme caution. Bank holidays can reduce liquidity and volume, while news reports can trigger price fluctuations in both directions.
When sessions overlap, these are often regarded good periods to trade.