What Are Trading Sessions? Best Times to Trade in 2025

Timing isn’t just everything in comedy—it’s crucial in investing too. Whether you’re a day trader glued to your screen or a long-term investor aiming for the next big move, understanding trading sessions can make a real difference to your bottom line. In 2025, with more Australians accessing global markets and new regulations shaping trading hours, knowing when and where to trade is more important than ever.

What Are Trading Sessions?

Trading sessions are the set periods when markets are officially open for buying and selling securities. For the ASX (Australian Securities Exchange), the main session runs from 10:00 am to 4:00 pm AEST, Monday to Friday. But with the rise of online brokers and access to international markets, many Aussies are now juggling multiple sessions across time zones.

• Pre-open: 7:00 am–10:00 am AEST (orders can be placed, but no trades are executed).
• Normal trading: 10:00 am–4:00 pm AEST.
• Closing auction: 4:00 pm–4:12 pm AEST (market determines closing prices).

Globally, major sessions include:

• Tokyo: 11:00 am–5:00 pm AEST
• London: 5:00 pm–1:30 am AEST
• New York: 11:30 pm–6:00 am AEST

This means the market is almost always moving somewhere in the world—so your strategy might need to adapt.

Why Trading Session Timing Matters in 2025

The timing of your trades can impact everything from price volatility to liquidity and even transaction costs. In 2025, several developments are making session timing more important than ever for Australians:

• Increased international access: More brokers now offer direct trading on US and Asian markets, letting you respond to overnight news instead of waiting for the ASX to open.
• ASX 24-hour trading: The ASX has expanded after-hours trading for select futures and ETFs, blurring the lines between traditional sessions.
• Regulatory changes: ASIC’s 2025 reforms target algorithmic trading and market manipulation, which can create sharp movements at session open and close.

For example, if you’re trading US stocks from Sydney, you’ll need to be active late at night or use limit orders to manage risk while you sleep. Meanwhile, the first 30 minutes of the ASX session is typically the most volatile, as investors react to overnight news from the US and Europe.

Strategies to Make the Most of Trading Sessions

Whether you’re a seasoned pro or just starting out, understanding session dynamics can help you optimise your trades. Here’s how:

• Plan Around Volatility: The opening and closing minutes of each session tend to see the biggest price swings. Day traders may seek opportunity here, while long-term investors might prefer quieter midday periods.
• Watch the Overlaps: When sessions overlap—like London and New York—liquidity is high and spreads are tight, which can benefit forex and global equities traders.
• Leverage After-Hours Trading: The ASX’s extended hours (for certain products) allow you to react to global events, but liquidity can be lower, so check your broker’s fees and execution policies.
• Set Automated Orders: If you can’t stay up for the US close, set stop-loss or take-profit orders to manage overnight risk.

For example, in 2025, many Australian ETFs with US exposure now see a spike in trading volume just after the US market opens, as local investors adjust their portfolios in real time.

Real-World Example: Navigating Sessions as an Aussie Investor

Consider Sarah, a Sydney-based investor who wants to diversify into US tech stocks. She uses a broker offering direct access to the NYSE and Nasdaq. While she can place trades 24/7, she notices that the best liquidity and tightest spreads occur when the US market is open (11:30 pm–6:00 am AEST). By planning her trades for early morning Sydney time, she minimises slippage and gets better prices—even if it means a few late nights or setting up automated trades.

On the flip side, local investors focused on ASX shares may use the pre-open session to queue up trades based on overnight news, or they might avoid the opening rush to steer clear of volatility spikes.

Key Takeaways for 2025

• Trading sessions shape when and how you can buy or sell shares and other assets.
• 2025 brings more access to global markets and new after-hours opportunities.
• Your strategy should consider session timing to manage risk, costs, and potential returns.