Introduction to Forex Trading Sessions in South Africa
Jan 07 2025
Forex market hours run from 5 pm Eastern Time on Sunday to 5 pm Friday. However, South African traders favor certain times as they offer increased opportunities. These periods are known as forex trading sessions, the four best-known being the New York, London, Sydney, and Tokyo sessions.
Differing time zones around the world play an essential role in determining optimal forex trading hours, as people are most active between 8 am and 4 pm local time. Trading when the largest number of users is active offers superior opportunities, so understanding the impact of forex time zones is paramount.
The South African Stock Market and Its Trading Hours
The Johannesburg Stock Exchange (JSE) has 388 listed companies, making it Africa's largest and most significant stock exchange. As such, it leads South Africa's financial markets. However, A2X Markets and the Cape Town Stock Exchange also operate, although they are much smaller.
What Time Does the Forex Market Open in South Africa
Traders wondering what time the forex market opens in South Africa will be pleased to know the market is open throughout the working week. Regardless, it's best to time activity alongside particular forex trading sessions, as the volume will be higher and potential opportunities more abundant.
It's important to understand that the JSE is an independent exchange with its own hours. People can trade JSE-listed stocks, commodities, and indices from 9:00 am to 5:00 pm South African Standard Time (SAST).
It should be noted that the JSE works differently from the forex market. While a selection of ZAR-denominated derivatives pairs can be traded, the JSE doesn't provide access to actual forex instruments.
Global Forex Trading Sessions Explained
What time does the market open in forex is a question with differing answers based on where a trader is located.
As we covered earlier, the market runs 24 hours a day, but there are four primary forex time zones, each of which coincides with a typical time traders operate in certain countries. Keep in mind that local daylight saving can affect when these periods occur in SAST time.
Sydney Session
The Sydney session in forex runs from between 8:00 am and 4:00 pm Australian Eastern Standard Time (AEST) or 12:00 am to 8:00 am SAST. As such, Sydney forex trading sessions suit people who trade overnight.
The session's most traded pairs are:
- AUD/USD
- AUD/JPY
- NZD/USD
Tokyo Session
The Tokyo session is active from 9:00 am to 6:00 pm in Japan Standard Time (JST), equating to 2:00 am to 11:00 am SAST, which suits early morning traders.
The most commonly traded forex pairs in this session are:
- USD/JPY
- AUD/JPY
- EUR/JPY
London Session
The London session takes place from 8:00 am to 6:00 pm Greenwich Mean Time (GMT) or 10:00 am to 8:00 pm SAST, making it similar to the typical forex session times in South Africa.
The most traded pairs in the London forex time zone are:
- EUR/USD
- GBP/USD
- GBP/JPY
New York Session
The New York session occurs between 8:00 am and 5:00 pm Eastern Standard Time (EST), which is 3:00 pm and 10:00 pm SAST, which is ideal for afternoon or post-work traders.
The session's most traded pairs are:
- EUR/USD
- USD/JPY
- GBP/USD
| Forex Time Sessions | Opening Time (SAST) | Closing Time (SAST) |
| Sydney | 12:00 am | 8:00 am |
| Tokyo | 2:00 am | 11:00 am |
| London | 10:00 am | 8:00 pm |
| New York | 3:00 pm | 10:00 pm |
Best Time to Trade Forex in South Africa
The overlap between the London and New York sessions, from 3:00 pm to 7:00 pm SAST, is the best time to trade forex in South Africa. These are the most active forex market hours, characterized by higher volume and volatility, offering traders additional opportunities and access to larger movements.
During this overlap period, the forex market has its highest cash inflows and more active participants than usual. As such, it presents powerful opportunities for South Africans who trade major currency pairs like EUR/USD, GBP/USD, and USD/ZAR, which are popular in both sessions.
Another overlap offering abundant trading opportunities is the London-Tokyo session, which runs for one hour from 9:00 am to 10:00 am. While it lacks volume compared to the London-New York session, Asian and European currency pairs tend to see increased volatility and demand.
It's worth keeping in mind that specific currency pairs will be traded more during different forex market hours. For example, although the Asian or Tokyo session has moderate volume compared to the London-New York overlap, pairs like USD/JPY and AUD/USD become more popular than usual.
While the forex market opening time is not fixed, it can help to base trading activities on forex time zones. By doing so, you can take advantage of the additional volume and trader's preferences for particular currency pairs to find more opportunities and enhance your win rate.
Factors to Consider When Choosing Forex Trading Hours
Selecting the forex market hours you want to trade is vital. Experienced, fast-paced traders may prefer when sessions in forex overlap as these periods offer increased liquidity and volatility, which translates to more potential trades while providing room for larger movements.
Similarly, new traders may prefer sessions in forex that are quieter and less active as they can be more predictable and enable people to practise trading with reduced risk.
When selecting trading hours, it's best to analyse forex charts to gain an understanding of how different forex trading sessions operate, whether participants usually buy/sell, and the session's average volume to assist in selecting hours that best match your strategy and schedule.
It's crucial to select forex market hours that align with your schedule, as it makes it easier to track the market and manage trades without disrupting your professional or personal life.
Certain pairs tend to move more during specific forex time sessions. For example, the USD/ZAR pair tends to move more during the New York Session, while GBP/JPY is typically more active during the London session, so tailoring your forex trading hours based on the assets you trade is vital.
Tips for Forex Trading in South African Time Zones
If you're trading major forex pairs, planning your activity around peak forex market hours is an effective way to increase your odds of finding a trade and allows you to take advantage of the higher-than-usual liquidity and larger potential movements. The London-New York session is particularly active.
Instead of watching the charts constantly, traders can leverage automation tools and price alerts to notify them of potential opportunities. For example, some charting platforms and brokers let people receive emails when an asset hits a specific price, freeing up significant time to spend elsewhere.
One trading strategy can yield two different results based on when a trader executes it. Remember, tracking your trades in a journal and noting the forex time zones that work best with your strategy is advisable. It enables traders to optimize and tailor their strategy based on the most effective trading sessions.
It also helps to trade using a reputable broker that offers valuable tools. STIC Cashback's promotion gives people a bonus for registering with a broker through its platform.
Other Forex Guides
Forex trading can be a challenging endeavor. Fortunately, our range of guides is tailored to provide actionable advice and valuable tips. Here are some of the most popular:
Forex Trading Hours in South Africa FAQs
Can I Trade Forex 24/7?
Throughout the week, forex market hours run for 24 hours per day. It only closes on the weekends. However, traders are most active during specific periods, so timing your forex activities can offer additional opportunities.