The London forex session is one of the most important trading sessions in the world. It is also known as the European session and it accounts for nearly 30% of the total forex trading volume. The London forex session is characterized by high liquidity, volatility, and trading volumes. In this article, we will discuss when the London forex session starts and what factors influence its timing.
The London forex session starts at 8:00 am GMT and ends at 4:00 pm GMT. This session overlaps with the Asian forex session and the New York forex session. The overlap between the London and New York sessions is particularly important because it is when the majority of trading activity takes place. During this overlap, the trading volume is at its highest, which leads to increased volatility and liquidity.
The timing of the London forex session is influenced by several factors, including geopolitical events, economic data releases, and daylight saving time. For example, if there is an important economic data release in Europe, such as the European Central Bank’s interest rate decision, the London forex session may start earlier than usual. Similarly, if there is a major geopolitical event in Europe, such as the Brexit referendum, the London forex session may start later than usual.
Another factor that influences the timing of the London forex session is daylight saving time. Daylight saving time is the practice of moving clocks forward by one hour during the summer months to extend the amount of daylight. The UK observes daylight saving time, which means that during the summer months, the London forex session starts at 7:00 am GMT and ends at 3:00 pm GMT. This change in timing can have a significant impact on trading strategies and market dynamics.
The London forex session is important because it is the center of the global forex market. Many of the world’s largest banks and financial institutions are based in London, and they play a significant role in the forex market. During the London forex session, traders can take advantage of high liquidity and volatility to make profits. However, it is important to note that trading during this session can be risky because of the high volatility.
In conclusion, the London forex session is one of the most important trading sessions in the world. It starts at 8:00 am GMT and ends at 4:00 pm GMT, and it overlaps with the Asian and New York forex sessions. The timing of the London forex session is influenced by several factors, including geopolitical events, economic data releases, and daylight saving time. Traders should be aware of these factors and adjust their trading strategies accordingly.