The London forex session is considered one of the most important trading sessions in the world of forex trading. It is the second largest forex trading session, right after the New York session, and it is responsible for about 30% of the total forex trading volume. The London session starts at a specific time, and it is important for traders to know when that time is, as it can greatly affect their trading strategy and decisions.
The London forex session officially starts at 8:00 AM GMT (Greenwich Mean Time), which is 3:00 AM EST (Eastern Standard Time). However, it is important to note that the forex market doesn’t open or close at a specific time, but rather, it operates 24 hours a day, five days a week. So, while the London session officially starts at 8:00 AM GMT, the forex market is always open, and traders from all over the world can trade at any time they want.
The reason why the London session is so important is that it overlaps with the Asian and New York sessions, creating a period of high volatility and liquidity. This means that there is a higher chance of making profits during this session, as there are more traders in the market, and more opportunities to buy and sell currencies. The London session is also the time when the European markets open, which can greatly affect the euro and other European currencies.
Traders who want to take advantage of the London session should be aware of the economic events that can affect the market during this time. For example, the release of economic data such as GDP, inflation, and employment figures can greatly affect the value of currencies, and traders should be prepared to adjust their trading strategy accordingly. The London session is also the time when major central banks such as the Bank of England and the European Central Bank make their announcements, which can have a significant impact on the market.
Another important factor to consider when trading during the London session is the trading volume. As mentioned earlier, the London session is responsible for about 30% of the total forex trading volume, which means that there is a lot of liquidity in the market. This can be both an advantage and a disadvantage for traders. On the one hand, there are more opportunities to make profits, but on the other hand, the high volume of trading can lead to increased volatility, which can also lead to losses.
In conclusion, the London forex session officially starts at 8:00 AM GMT, but the forex market is always open, and traders can trade at any time they want. The London session is an important trading session, as it overlaps with the Asian and New York sessions, creating a period of high volatility and liquidity. Traders who want to take advantage of the London session should be aware of the economic events that can affect the market during this time, as well as the trading volume and the risk of increased volatility. By understanding these factors, traders can develop a successful trading strategy and make profits during the London session.
