The London session is one of the most active and volatile trading sessions in the forex market. It is known to be the center of the forex trading world and is widely considered as the most important session of the day. With the majority of the world’s largest financial institutions and banks located in London, it’s no surprise that the London session is the busiest forex trading session.
So when does the London session open in forex? The London session starts at 8:00 AM GMT (Greenwich Mean Time) and closes at 4:00 PM GMT. However, during daylight saving time, the opening and closing time is shifted by an hour to 9:00 AM to 5:00 PM GMT. It’s important to note that the opening and closing times of the London session may vary depending on the broker you are trading with, as some brokers may use different time zones.
The London session is known for its high liquidity, which means there are more buyers and sellers in the market at this time. This high liquidity creates more price volatility and opportunities for traders to profit from. The London session also overlaps with the Asian and New York sessions, which makes it the most active time of the day in the forex market.
During the London session, traders can expect to see the most movement in the major currency pairs such as EUR/USD, GBP/USD, and USD/JPY. This is because these currency pairs are most affected by the economic news releases that come out during the session. Traders should keep an eye on the economic calendar to know when these news releases are scheduled to come out, as they can have a significant impact on the market.
Another important factor to consider during the London session is the Bank of England (BOE) monetary policy announcements. The BOE is responsible for setting the interest rates in the UK, and any changes in interest rates can have a significant impact on the value of the British pound. Traders should be aware of the dates when the BOE is scheduled to make these announcements, as they can create high volatility in the market.
In addition to news releases and monetary policy announcements, traders should also pay attention to technical analysis during the London session. The high liquidity and volatility during this session make it an ideal time for technical traders to enter and exit trades. Traders can use various technical indicators and chart patterns to identify potential trading opportunities during the London session.
In conclusion, the London session is a crucial time for forex traders, as it is the most active and volatile session of the day. The opening and closing times of the London session are 8:00 AM to 4:00 PM GMT, with a shift of one hour during daylight saving time. Traders should be aware of the economic news releases, monetary policy announcements, and technical analysis during this session to take advantage of the high liquidity and volatility. By understanding the key factors that affect the London session, traders can make informed decisions and maximize their profits in the forex market.
