London Session

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 2

Trading sessions

When Can You Trade Forex: London Session

Just when Asian market participants are starting to close shop, their European counterparts are just
beginning their day.
While there are several financial centers all around Europe, it is London that market participants keep
their eyes on.
It’s no wonder that it is considered the forex capital of the world with thousands of
folks making transactions every single minute.
About 43% of all forex transactions happen in London.

Some traders also refer to the London session as the “European” trading session.

That’s because aside from London, there are major financial centers open in Europe as well, such
as Geneva, Frankfurt, Zurich, Luxembourg, Paris, Hamburg, Edinburgh, and Amsterdam.

(EXCEL)
These pip values were calculated using averages of past data. Take note that these
are NOT ABSOLUTE VALUES and can vary depending on liquidity and other
market conditions.

Also, the session range for EUR/CHF has not been included since the Swiss franc
has been pegged to the euro at 1.2000 during the period.

Here are some neat facts about the European session:

 Because the London session crosses with the two other major trading sessions–and with
London being such a key financial center–a large chunk of forex transactions take place
during this time. This leads to high liquidity and potentially lower transaction costs, i.e.,
lower pip spreads.
 Due to the large number of transactions that take place, the London trading session is
normally the most volatile session.
 Most trends begin during the London session, and they typically will continue until the
beginning of the New York session.
 Volatility tends to die down in the middle of the session, as traders often go off to eat lunch
before waiting for the New York trading period to begin.
 Trends can sometimes reverse at the end of the London session, as European traders may
decide to lock in profits.
Which Pairs Should You Trade?

Because of the volume of transactions that take place, there is so much liquidity during the European
session that almost any pair can be traded.

Of course, it may be best to stick with the majors (EUR/USD, GBP/USD, USD/JPY, and USD/CHF),


as these normally have the tightest spreads.

Also, it is these pairs that are normally directly influenced by any news reports that come out during
the European session.

You can also try the yen crosses (more specifically, EUR/JPY and GBP/JPY), as these tend to be
pretty volatile at this time.

Because these are cross pairs, the spreads might be a little wider though.

You might also like