If you’re a forex trader, you would know that the London session is one of the most active trading sessions. It’s also known as the European session and is often considered the most important session as it accounts for a significant percentage of daily forex transactions. If you’re wondering what time does the London session start, then you’ve come to the right place.
What is the London Session?
The London session is one of the three major forex trading sessions, along with the Asian and US sessions. It begins when the Asian session ends and overlaps with the US session for a few hours before closing. It’s important to note that while each of these sessions has its own unique characteristics, they all overlap at some point during trading hours.
What Time Does it Start?
The London session starts at 8:00 AM GMT (Greenwich Mean Time) and ends at 4:00 PM GMT. However, it’s important to note that during daylight saving time (DST), which occurs between March and October in Europe and North America, trading times are shifted forward by an hour.
During DST, the London session will start at 7:00 AM GMT and end at 3:00 PM GMT. This means that if you’re located in a country that doesn’t observe DST, then your local time will be different from GMT during this period.
Why is it Important?
There are several reasons why the London session is important for forex traders:
- The largest volume of forex transactions occur during this time
- The European markets are highly influential in global economics
- The opening of this session often sets the tone for the rest of the day
What to Expect During the London Session?
Since this is one of the most active trading sessions, you can expect high volatility and increased liquidity. This means that there will be more opportunities to trade, but also higher risks involved.
During the London session, the GBP/USD and EUR/USD currency pairs are the most actively traded. This is because the UK and Eurozone are major players in global finance and economics.
Conclusion
In conclusion, the London session is an important time for forex traders as it accounts for a significant portion of daily transactions. It starts at 8:00 AM GMT (7:00 AM GMT during DST) and ends at 4:00 PM GMT (3:00 PM GMT during DST). During this time, you can expect high volatility and increased liquidity, with the GBP/USD and EUR/USD currency pairs being the most actively traded.
As a forex trader, it’s important to keep track of these trading sessions to maximize your profits and minimize risks. So mark your calendars with the start of the London session and get ready to make some trades!