The forex market is a decentralized market that is open 24 hours a day, five days a week. It is the largest and most liquid financial market in the world, with a daily turnover of around $5 trillion. The forex market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. In this article, we will discuss the London trading session and what time it starts.
The London trading session is the most active and liquid trading session in the forex market. It is often referred to as the European session because it overlaps with the trading hours of the European exchanges such as the Frankfurt Stock Exchange and the Paris Stock Exchange. The London trading session accounts for approximately 36% of the total daily forex trading volume. The session opens at 8:00 AM GMT and closes at 4:00 PM GMT.
The London trading session is known for its high volatility and liquidity. This is due to the fact that it overlaps with the Tokyo and New York trading sessions, which are also highly active and liquid. During the London session, traders can take advantage of the price movements in the major currency pairs such as EUR/USD, GBP/USD, and USD/JPY.
The opening of the London trading session is often marked by a surge in trading activity as traders in Europe start their day. The first hour of the session, from 8:00 AM GMT to 9:00 AM GMT, is often referred to as the “London open” and is known for its high volatility. This is because traders are reacting to news and economic data releases from the Asian and Australian markets that have occurred during the overnight hours. The London open is also a popular time for traders to enter or exit positions as they try to take advantage of the price movements.
The London trading session is also influenced by the economic data releases from the Eurozone and the United Kingdom. Traders closely monitor the economic indicators such as GDP, inflation, and employment data to gauge the health of the economies and make trading decisions based on the data releases. The European Central Bank (ECB) and the Bank of England (BOE) also release their policy decisions and statements during the London trading session, which can cause significant market volatility.
In conclusion, the London trading session is the most active and liquid trading session in the forex market. It opens at 8:00 AM GMT and closes at 4:00 PM GMT. The London open, from 8:00 AM GMT to 9:00 AM GMT, is known for its high volatility and is a popular time for traders to enter or exit positions. The session is influenced by economic data releases from the Eurozone and the United Kingdom and the policy decisions and statements from the ECB and BOE. Traders can take advantage of the price movements in the major currency pairs such as EUR/USD, GBP/USD, and USD/JPY during the London trading session.
