The forex market is the largest financial market in the world, with trillions of dollars traded every day. As a result, it operates 24 hours a day, 5 days a week, enabling traders from all over the world to participate and trade at different times. One of the most important sessions in the forex market is the London session, which is often considered the most active and volatile session. In this article, we will explain when the London forex market opens and what traders should expect during this session.
When is the London Forex Market Open?
The London forex market opens at 8:00 AM GMT (3:00 AM EST) and closes at 4:00 PM GMT (11:00 AM EST). This session overlaps with both the Asian and American trading sessions, making it the most active trading session of the day. During this time, traders can expect high liquidity and volatility, which creates numerous opportunities for profit.
The London session accounts for approximately 35% of the total daily forex trading volume, making it an essential period for traders to watch. The session is known for its high trading volume, which creates numerous opportunities for traders to enter and exit trades at competitive prices.
What to Expect During the London Forex Session?
The London session is known for its fast-paced trading environment, which makes it a favorite among active traders who seek to capitalize on market movements quickly. Some of the key features of this session include:
1. High Liquidity
The London session is the most liquid trading session of the day, which means that traders can easily enter and exit positions without slippage or price gaps. This is because the session overlaps with both the Asian and American trading sessions, which increases trading volume and liquidity.
2. Volatility
The London session is also known for its volatility, which means that prices can move rapidly in either direction, providing numerous trading opportunities. The session’s volatility is often attributed to the release of economic data, news announcements, and trading activity from institutional investors.
3. Trading Opportunities
Due to the high liquidity and volatility of the London session, traders can take advantage of numerous trading opportunities. The session typically sees high trading volume in currency pairs such as EUR/USD, GBP/USD, and USD/JPY, among others.
4. News Releases
The London session is also known for its release of economic data, news announcements, and other events that can impact currency prices. Traders should be aware of these events and their potential impact on the market, as they can create trading opportunities or cause significant price movements.
Conclusion
The London forex market is one of the most important and active trading sessions in the forex market, with high liquidity and volatility. Traders should be aware of when this session opens and what to expect during this time, as it can provide numerous trading opportunities. Additionally, traders should keep an eye on economic data releases and news announcements that can impact currency prices during this session. Overall, the London session is an essential period for traders to watch and participate in, as it can provide significant profit potential.
