The London forex market, also known as the London session, opens at 8:00 AM GMT (Greenwich Mean Time), which is 3:00 AM EST (Eastern Standard Time) and 12:00 AM PST (Pacific Standard Time). It is the largest forex market in the world, accounting for over 43% of all forex transactions, and is a crucial time for traders to watch and make decisions.
The London forex market is known for its high liquidity and volatility, which makes it an attractive time for traders to enter and exit trades. During this time, traders can expect to see significant price movements in major currency pairs, such as EUR/USD, GBP/USD, USD/JPY, and USD/CHF.
One of the main reasons why the London forex market is so active is because it overlaps with the Asian forex market and the New York forex market. This means that traders from Asia and Europe are active in the market, and there is a lot of trading activity happening at the same time.
Another reason why the London forex market is so important is because it is home to some of the largest financial institutions in the world, such as the Bank of England and the London Stock Exchange. These institutions have a significant impact on the forex market and can cause large price movements in the currency pairs they are trading.
During the London forex market opening hours, traders should be aware of the economic calendar and any scheduled news events that may affect the currency pairs they are trading. This includes announcements from central banks, such as interest rate decisions, as well as economic data releases, such as GDP, inflation, and employment figures. These events can cause significant price movements in the market and can create trading opportunities for traders.
Traders should also be aware of the trading volume during the London forex market opening hours. As mentioned earlier, this is a highly liquid market, which means that there is a lot of trading activity happening at the same time. This can create a lot of volatility and can cause rapid price movements in the currency pairs being traded. Traders should use appropriate risk management techniques, such as stop-loss orders, to manage their positions during these periods of high volatility.
In conclusion, the London forex market opens at 8:00 AM GMT and is a highly active and liquid market. It is important for traders to be aware of the economic calendar and any scheduled news events that may affect the currency pairs they are trading. They should also be mindful of the trading volume and use appropriate risk management techniques to manage their positions during periods of high volatility. By doing so, traders can take advantage of the opportunities presented by the London forex market opening hours and achieve their trading goals.
