In plain English
What Session overlap means
FX overlaps happen when two regional sessions run together, such as London-New York or Asia-London. During these windows, more participants are quoting and trading the same pairs at once. That often produces tighter spreads, more volume, and stronger price moves than in quieter hours.
Why it matters
Overlaps are important because they often combine the liquidity of one center with the news flow of another. That can improve execution for some orders, but it can also raise short-term volatility around major releases. Many intraday traders focus on overlap periods for that reason.
Example
If EUR/USD is trading during the London-New York overlap, a U.S. data release can arrive while both centers are active. The result can be rapid repricing with more counterparties available to trade.
Quick answers
Common questions
Which overlap matters most in forex?+
The London-New York overlap is often the most important because it combines two of the largest FX centers.
Are overlaps fixed clock times?+
No. They shift with daylight-saving changes and local holidays, so the practical window changes through the year.
Sources