Forex trading is a 24-hour market that operates around the globe. The London session is one of the three major forex trading sessions, along with the New York session and the Tokyo session. The London session is considered one of the most important sessions due to its high trading volume and liquidity. In this article, we will explore the London session forex and when it occurs.
What is the London session forex?
The London session forex is the European forex trading session that starts at 8 am GMT and ends at 4 pm GMT. It is also known as the London open, and it is when the London forex market opens for business. The London session is the second-largest forex trading session in terms of trading volume, after the New York session.
The London session forex is a prime time for forex traders to trade the Euro (EUR), British Pound (GBP), and Swiss Franc (CHF). The London session is also known for its high volatility, which can provide traders with ample trading opportunities.
Why is the London session forex important?
The London session forex is vital for many reasons. Firstly, it is the home of the largest forex market in the world, the London forex market. The London forex market accounts for approximately 43% of global forex trading volume, making it a crucial market for forex traders.
Secondly, the London session forex overlaps with the New York session, which means that traders can take advantage of the increased trading volume and volatility. The overlap between the two sessions occurs between 12 pm GMT to 4 pm GMT. During this time, traders can expect increased liquidity and volatility, which can lead to profitable trading opportunities.
Thirdly, the London session forex is also significant because it is the time when most economic news releases from Europe are announced. Economic news releases can have a significant impact on the forex market, and traders need to be aware of these announcements to make informed trading decisions.
What are the best currency pairs to trade during the London session forex?
The London session forex is an excellent time to trade the EUR/USD, GBP/USD, and USD/CHF currency pairs. These currency pairs are the most actively traded during the London session forex, and they offer traders excellent trading opportunities.
The EUR/USD currency pair is the most actively traded currency pair in the forex market, and it accounts for approximately 28% of all forex trades. The GBP/USD currency pair is the second most actively traded currency pair, accounting for approximately 14% of all forex trades. The USD/CHF currency pair is also a popular currency pair to trade during the London session forex.
How to trade during the London session forex?
To trade during the London session forex, traders need to have a forex trading account with a reputable forex broker. Traders should also have a solid trading strategy and a good understanding of fundamental and technical analysis.
Traders should also be aware of the economic news releases that are scheduled during the London session forex. Economic news releases can have a significant impact on the forex market, and traders need to be aware of these announcements to make informed trading decisions.
In conclusion, the London session forex is a crucial forex trading session that offers traders excellent trading opportunities. The London session forex is the second-largest forex trading session in terms of trading volume, and it is characterized by high volatility and liquidity. Traders looking to trade during the London session forex should have a solid trading strategy, a good understanding of fundamental and technical analysis, and be aware of economic news releases.
