In plain English
What Trading session means
Forex is an over-the-counter market with participants and electronic venues in multiple time zones. It operates for most of the business week, but activity is uneven across the day. Traders commonly refer to Asian, London, and New York sessions as practical time-zone labels for periods when institutions in those regions are especially active.
Why it matters
Trading-session labels help explain why liquidity, bid-ask spreads, and price movement can differ by time of day. They do not guarantee a particular level of volume, volatility, or execution quality. Holidays, major economic releases, daylight-saving changes, and a broker’s own maintenance window can materially alter usual conditions.
Example
A trader sees EUR/USD quoted throughout much of the weekday but notices a wider spread late on Friday in the trader’s platform. That does not mean the currency pair has stopped existing. It may reflect fewer active counterparties, lower available liquidity, or the broker preparing for its scheduled market close.
Quick answers
Common questions
Is forex open 24 hours every day?+
No. The global OTC FX market is commonly described as operating around the clock for most of the business week, but it is not a continuous seven-day market. Brokers may also impose their own trading breaks or maintenance periods.
Does a trading session set the price of a currency pair?+
No. Exchange rates emerge from trading across a decentralized network of participants and venues. Session labels identify periods of concentrated regional activity; they do not designate a single price-setting exchange.
Sources