The London Forex session, also known as the European trading session, is one of the most significant trading sessions in the Forex market due to its high trading volume and liquidity. This session is the largest and most active trading session globally, accounting for approximately 34% of the total daily Forex trading volume.
The London Forex session begins at 8:00 am GMT and ends at 4:00 pm GMT. This session overlaps with the other major trading sessions, including the Asian and US trading sessions, which makes it a very active and volatile period in the Forex market.
The Forex market is a decentralized market where traders from all over the world participate in buying and selling currencies. The market operates 24 hours a day, five days a week, and is divided into four major trading sessions: the Asian, European, US, and Pacific trading sessions.
The London Forex session is the second major trading session and opens after the Asian session closes. The Asian session starts at 11:00 pm GMT and ends at 8:00 am GMT. The overlap between the Asian and European sessions provides traders with an opportunity to trade currencies from different regions, which increases liquidity and volatility in the market.
The London Forex session is known for its high liquidity, which means that traders can easily buy and sell currencies without affecting the market’s price significantly. Liquidity is vital in the Forex market as it ensures that traders can enter and exit trades quickly and at a fair price.
The high liquidity during the London session is due to the presence of major financial centers, including London, Frankfurt, and Paris. These cities are home to some of the largest banks, financial institutions, and hedge funds in the world, which makes the London session a hub for Forex trading activities.
The London Forex session is also known for its active trading hours, as it is the most active trading session globally. The high trading volume during this session provides traders with numerous trading opportunities, including high volatility currency pairs such as the GBP/USD, EUR/USD, and USD/JPY.
During the London Forex session, traders can take advantage of news releases and economic data releases, which can significantly impact the Forex market’s price. Economic data releases such as the UK GDP, inflation data, and employment figures can affect the GBP’s price, making it an ideal currency pair to trade during the London session.
The London Forex session’s closing hours overlap with the opening hours of the US trading session, which makes it an essential period for traders who want to position themselves for the US market’s open. The US trading session is known for its high volatility, and traders can use the London session’s closing hours to prepare for the US market’s open.
In conclusion, the London Forex session is one of the most significant trading sessions in the Forex market due to its high trading volume and liquidity. The session opens at 8:00 am GMT and ends at 4:00 pm GMT, and overlaps with the Asian and US trading sessions. The high liquidity and active trading hours during the London session provide traders with numerous trading opportunities, including high volatility currency pairs such as the GBP/USD, EUR/USD, and USD/JPY. Therefore, traders who want to take advantage of the Forex market’s high liquidity and volatility should pay attention to the London Forex session.
