The London Forex Market is the largest financial market in the world. It is a decentralized market where currencies are traded 24 hours a day, five days a week. The market is open for trading from Monday to Friday, with trading hours varying depending on the time zone.
The London Forex Market opens at 8:00 am GMT (Greenwich Mean Time). However, due to the daylight saving time changes, the opening time varies throughout the year. During the winter months (October to March), the market opens at 8:00 am GMT, while during the summer months (April to September), it opens at 7:00 am GMT.
The market operates in three major sessions: the Asian, European, and American sessions. The Asian session starts at 11:00 pm GMT on Sunday and ends at 8:00 am GMT on Monday. During this session, the market is relatively quiet, with low volatility and low liquidity. Most of the trading activity is concentrated in the Japanese Yen and the Australian Dollar.
The European session is the busiest and most volatile session of the day. It starts at 8:00 am GMT and ends at 4:00 pm GMT. This session is characterized by high liquidity and high volatility, as traders from Europe, the Middle East, and Africa enter the market. The most actively traded currencies during this session are the Euro, the British Pound, and the Swiss Franc.
The American session starts at 1:00 pm GMT and ends at 10:00 pm GMT. This session is relatively quiet compared to the European session, as traders from Europe start to wind down their trading activities. The most actively traded currencies during this session are the US Dollar, the Canadian Dollar, and the Mexican Peso.
It is important to note that the London Forex Market overlaps with other major financial markets, such as the New York and Tokyo markets. The overlap between the London and New York markets is the most significant, as it accounts for more than 50% of the total trading volume. This overlap occurs between 1:00 pm GMT and 4:00 pm GMT, and it is characterized by high liquidity, high volatility, and tight spreads.
In conclusion, the London Forex Market is open from Monday to Friday, with trading hours varying depending on the time zone. The market opens at 8:00 am GMT during the winter months and 7:00 am GMT during the summer months. The market operates in three major sessions, with the European session being the busiest and most volatile. Traders should take note of the overlap between the London and New York markets, as it offers the most significant trading opportunities.