The forex market is a decentralised global network that operates 24 hours a day across four major trading sessions: Sydney, Tokyo, London and New York. This guide explains how these sessions overlap, how liquidity rises and falls through the trading day, and how currency pairs are quoted and categorised. For learners in the Chandigarh Tricity, understanding this structure is the foundation on which all forex analysis is built. The content is educational and SEBI-compliant, with no promises of returns.
While you sleep in Chandigarh, the forex market is wide awake in Tokyo, then London, then New York. It is the only major financial market that never closes during the working week, handing the baton from one global city to the next around the clock.
Understanding this rhythm of sessions, liquidity and currency pairs is what separates a confused beginner from an informed learner. This guide explains how the market works, with concrete examples, and is purely educational rather than any encouragement to trade.
At Candila Education in Sector 17, Chandigarh, market structure is taught early in the Forex and Cryptocurrency Trading Boot Camp, because everything else builds on it.
A real example: why the same pair feels different at 2 pm and 7 pm IST
Suppose a learner in Chandigarh watches EUR/USD at 2 pm India time. The London session is active, volume is high, and price moves smoothly. The same learner checks again at 11 pm, deep in the quiet hours after New York winds down, and the pair barely moves for an hour.
Nothing about the euro changed. What changed is liquidity, the number of active buyers and sellers. The overlap of the London and New York sessions, roughly 5:30 pm to 9:30 pm IST, is typically the busiest window of the day. Knowing when a pair is liquid is a basic but powerful piece of market understanding.
A 24-hour decentralised market
The forex market runs continuously from Monday morning in Asia to Friday evening in North America. Because it spans every major time zone, there is always a financial center open somewhere in the world during the trading week. This is fundamentally different from the National Stock Exchange in India, which has defined trading hours.
The market is described as over the counter because transactions happen directly between parties through electronic networks rather than on a central exchange. This decentralisation is what allows it to operate around the clock.
The four major trading sessions
The trading day is divided into four overlapping sessions. The Sydney session opens the week, followed by Tokyo, then London, and finally New York. For learners in India, the London and New York sessions occur during the afternoon and evening in Indian Standard Time, which is often when many study global currency movements.
Each session has its own character. The Tokyo session tends to be active for yen pairs, while the London session is the busiest overall, handling a large share of global volume. The overlap between London and New York is typically the period of highest activity.
Why liquidity matters
Liquidity refers to how easily a currency pair can be traded without causing a large change in its price. The major pairs, such as EUR/USD, are highly liquid because so many participants are active in them. Higher liquidity generally means tighter spreads, which is the small difference between the buying and selling price.
Liquidity varies through the day. It tends to be highest during session overlaps and lower during quiet hours. Understanding when liquidity rises and falls helps explain why price behavior can differ at different times, an important concept in technical analysis.
How currency pairs are quoted
A forex quote shows two prices: the bid, at which the market will buy the base currency, and the ask, at which it will sell. The difference is the spread. When you see EUR/USD quoted, the number tells you how many US dollars equal one euro.
Price movements are measured in pips, which is usually the fourth decimal place for most pairs. For yen pairs, the pip is the second decimal place. These conventions are part of the basic vocabulary every forex learner needs.
Categories of currency pairs
Major pairs always include the US dollar and represent the most traded economies. Minor pairs, also called crosses, do not include the US dollar but still involve major currencies, such as EUR/GBP. Exotic pairs combine a major currency with one from a smaller or emerging economy and tend to be less liquid and more volatile.
For Indian learners, INR pairs available on authorised exchanges form a distinct and regulatory-relevant category. A structured course explains which pairs are accessible within the Indian framework and why.
Putting the structure to use in Chandigarh
Knowing how the market is structured is not academic. It directly shapes how analysis is applied. A pattern that forms during a low-liquidity period may behave differently from one that forms during a session overlap. Recognising these conditions is part of developing analytical judgement.
At Candila Education in Sector 17, Chandigarh, the structure of the forex market is taught early in the Forex and Cryptocurrency Trading Boot Camp, giving students from Chandigarh, Mohali, Panchkula and beyond a solid base before moving into chart study and risk management.
Major forex sessions in Indian time
The market moves through four main sessions. Timings shift slightly with daylight saving, but the pattern holds.
Session | Major City | Approx. IST Window |
Asian | Tokyo | 5:30 am to 2:30 pm |
European | London | 12:30 pm to 9:30 pm |
US | New York | 6:30 pm to 2:30 am |
Pacific | Sydney | 3:30 am to 12:30 pm |
The London and New York overlap is usually the most active period of the trading day for major pairs.
Key terms in this lesson
Three words explain most of what happens across sessions.
- Liquidity: How easily a pair can be bought or sold without moving the price much. More active participants mean higher liquidity.
- Volatility: How much and how fast a price moves. Sessions with high participation often show more volatility.
- Session overlap: A window when two regions trade at once, usually producing the highest activity of the day.
Common beginner mistakes about market hours
Local learners often misunderstand timing in ways that are easy to correct.
- Studying charts only in dead hours. Observe pairs during their active sessions to see realistic price behavior.
- Assuming 24-hour means always active. The market is open all day, but each pair has busy and quiet windows.
- Ignoring overlaps. The London and New York overlap often shows the clearest movement for study.
What this means for a learner in the Tricity
For someone studying in Chandigarh, Mohali or Panchkula, the practical takeaway is that the most instructive hours to observe major pairs fall in the late afternoon and evening, IST. This suits many working learners and students who study after college or work.
A structured course helps a beginner build a sensible observation routine rather than staring at charts at random times. This is one of the small but real advantages of learning in a guided local programmed instead of piecing it together alone.
Frequently Asked Questions
When is the forex market open in Indian time?
The forex market operates 24 hours a day from Monday to Friday. In Indian Standard Time, the active global sessions broadly run through the day and into the evening, with the London and New York overlap typically being the most active period during the late evening. Indian exchange-traded currency derivatives have their own defined hours set by the exchanges.
What is a pip in forex?
A pip is the smallest standard unit of price movement in a currency pair. For most pairs it is the fourth decimal place, while for yen pairs it is the second decimal place. Pips are used to measure how far a price has moved and are a core part of the vocabulary taught in any forex education course.
What is the spread in forex trading?
The spread is the difference between the bid price, at which the market buys, and the ask price, at which it sells. It represents a cost of participation. Highly liquid major pairs usually have tighter spreads, while exotic pairs tend to have wider spreads. Understanding spreads is part of basic forex literacy.
Which forex session is most active?
The London session is generally the busiest, and the overlap between the London and New York sessions tends to see the highest overall activity and liquidity. This is explained in detail in the forex curriculum at Candila Education, so learners understand how timing relates to market behavior.
About the Educator at Candila Education
Candila Education is the education division of Candila Capital Pvt. Ltd., based at SCO 37-38, 4th Floor, Sector-17C, Chandigarh-160017, near the ISBT Sector 17. It is led by Kamal Preet Singh, who is NISM Series-XII and Series-XV certified and brings 17 years of experience in the markets. The teaching methodology is structured and risk-first, building concepts in a deliberate order and prioritising capital protection and analytical skill over outcomes.
All courses are designed to comply with SEBI guidelines on investor education. The institute serves learners across Chandigarh, Mohali, Panchkula and Zirakpur, and is clear at every step that it provides education rather than investment advice or any promise of returns.
Learn Forex with Candila Education in Chandigarh
If you want to study forex in a structured, SEBI-compliant classroom in Chandigarh, Candila Education teaches it within the Forex and Cryptocurrency Trading Boot Camp, with combination programmes covering swing trading, options and forex. The focus throughout is on disciplined education and risk management, not guaranteed results. To learn more, you can reach Candila Education on +91-9056772252 or visit candilaeducation.com.