The forex market is a global market that operates 24/7, except for weekends. However, each financial center has its own opening and closing times, and these times create overlapping periods of trading activity. The London forex market is one of the most important financial centers in the world, and it has its own opening and closing times that traders need to be aware of.
The London forex market is also known as the European forex market, as it is the center of forex trading in Europe. The London market opens at 8:00 AM GMT and closes at 4:00 PM GMT. This means that the market is open for eight hours a day. However, during this period, the market is the most active and liquid, as it overlaps with the opening of other financial centers, such as New York and Tokyo.
The opening of the London forex market is important for traders, as it sets the tone for the day’s trading. The market is usually quiet in the first hour of trading, as traders and institutions assess the news and data that has been released overnight. However, as the European session gets underway, trading activity picks up, and the market becomes more volatile.
The London forex market is the largest forex market in the world, and it accounts for 34% of all forex transactions. This means that the London market is the most important market for forex traders, and it has a significant impact on the value of currencies. During the London session, the most traded currency pairs are the EUR/USD, GBP/USD, and USD/JPY.
One of the reasons why the London forex market is so important is that it is home to some of the largest financial institutions and banks in the world. These institutions trade billions of dollars every day, and their trading activity can have a significant impact on the market. For example, if a large bank decides to buy a significant amount of a particular currency, it can cause the value of that currency to rise.
Another reason why the London forex market is important is that it is the center of the forex market in Europe. This means that the market is open when important economic data is released, such as GDP figures and employment data. Traders can use this data to make informed trading decisions and to take advantage of the volatility that often accompanies economic data releases.
In conclusion, the London forex market opens at 8:00 AM GMT and closes at 4:00 PM GMT. This eight-hour period is the most active and liquid time of the day, and it is the most important time for forex traders. During this period, the market is influenced by the trading activity of large financial institutions and banks, as well as economic data releases. Traders need to be aware of the opening and closing times of the London forex market to take advantage of the opportunities that it presents.
