Forex trading is a global activity with different markets operating at different times. The London forex market is one of the most active forex markets in the world, and it is known for its high trading volume and liquidity. However, if you are new to forex trading, you may be wondering what time the London forex market closes. In this article, we will explain the London forex closing time and why it matters to traders.
The London forex market is the largest forex market in the world, accounting for about 37% of global forex trading volume. It is open from 8:00 am to 4:00 pm GMT, which means it operates for 8 hours a day. However, it is important to note that the London forex market does not operate continuously during these 8 hours. Instead, it is divided into three main trading sessions, each with its unique characteristics and trading opportunities.
The first trading session in the London forex market is the Asian session, which begins at 8:00 am GMT and ends at 12:00 pm GMT. During this session, the market is relatively quiet, and trading volume is low. This is because the Asian session is the time when most forex traders in Asia are still asleep. However, there are some trading opportunities during this session, especially for traders who trade the yen pairs. This is because the Japanese yen is highly traded during this session.
The second trading session in the London forex market is the European session, which begins at 12:00 pm GMT and ends at 3:00 pm GMT. This is the most active trading session in the London forex market, and it is the time when most traders are active. During this session, the market is highly volatile, and the trading volume is at its highest. This is because this is the time when both the London and New York forex markets are open, and traders from both markets are actively trading. This session offers many trading opportunities and is the best time to trade the major currency pairs such as EUR/USD, GBP/USD, and USD/JPY.
The third and final trading session in the London forex market is the US session, which begins at 3:00 pm GMT and ends at 4:00 pm GMT. During this session, the market is relatively quiet, and trading volume is low. This is because most traders in the US have already finished their trading activities, and the market is winding down for the day. However, there are still some trading opportunities during this session, especially for traders who trade the USD pairs.
Now that we have explained the different trading sessions in the London forex market, let us discuss what time the London forex market closes. As mentioned earlier, the London forex market closes at 4:00 pm GMT. This means that traders have until 4:00 pm GMT to close their positions or adjust their trading strategies. After this time, the market is closed, and traders cannot trade until it opens again the following day.
It is important to note that even though the London forex market is closed, forex trading continues in other parts of the world. For example, the Asian forex market opens a few hours after the London forex market closes, and the New York forex market opens a few hours after the Asian forex market closes. Therefore, traders can still trade forex even after the London forex market closes.
In conclusion, the London forex market is one of the most active forex markets in the world, and it is divided into three main trading sessions. The market closes at 4:00 pm GMT, and traders have until this time to close their positions or adjust their trading strategies. The London forex closing time is essential for traders because it helps them plan their trading activities and manage their risk effectively. By understanding the different trading sessions and the London forex closing time, traders can make informed trading decisions and maximize their profits.
