Best Currency Pairs to Trade During London Forex

What is the London session?

London session represents one of the most active forex trading times, covering a busy period of the London stock exchange and the most liquid period of the forex trading market. London’s forex time starts from 3 a.m. to 12 p.m. EST (7 a.m. to 4 p.m. GMT).

forex sessions EST

During this session, London session forex pairs are the most traded forex pairs and usually include EUR/USD, GBP/USD, USD/CHF, and USD/JPY from significant forex pairs.

What time does the London session open?

London forex session opens at 7 GMT (springtime) or 8 GMT (winter time). London forex session opens at 3EST (springtime) or 4EST (winter time).

What time does the London session close?

London forex session closes at 16 GMT (springtime) or 17 GMT (winter time). London forex session closes at 12 EST (springtime) or 13 EST (winter time).

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Forex Session Times

The London forex market occupies a superior position in the foreign exchange market, with its total average forex turnover being 35%. The London session, therefore, makes for the most significant amount as compared to its fellows. Moreover, the session overlaps throughout the year with the New York session. Read with us to know all the basic facts about the London forex market, such as the best currency pairs to be traded, how to trade breakouts, and get hold of certain tricks to have the best experience trading.

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What Are the Timings of the London Forex Market?

The London forex session is functional from 33:00 a.m.Eastern Time to 112:00 p.m.Eastern Time. As a result, this market session experiences the maximum forex volume out of all the forex markets running. Let us now study the factors that stand behind such incredible functioning of the market.

How Does the London Forex Market Work?

Following listed are the major factors in the functioning of the London foreign exchange:

1. The London forex session is speedy and active
: The Tokyo forex market leads into the London forex marketing. As the prices shift from liquidity providers, one can witness increased volatility. Since the price commences from London, an increased average hourly move on several major currency pairs can be seen. It becomes easier to crack the support and resistance than in the Asian session, where the volatility is relatively lower. By considering the volatility, traders can take advantage by using trading breakouts, and therefore, knowing these concepts well becomes a must. Traders generally always look for more volatile moves that can be beneficial for a more extended period.

2. Keep an eye on the overlap
: The moment the London forex session and the US forex session overlap is termed an overlap. This occurs between 88:00 a.m.European Time to 112:00 p.m.European Time. Since in these 4 hours, major markets are at play, there is an increase in volatility. Further, with an increase in volatility, there can be seen big and fast moves being taken in the market. The volatility is at its peak when these two markets overlap. For taking advantage of this volatility, traders can employ the breakout strategy and make the most of their trading.

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3. More liquidity
: London forex market qualifies as one of the most liquid trading sessions in the market. Trade can occur even at a low spread with a constant high volume of buying and selling currency pairs. Small or day traders can capitalize on short moves by looking for trends and breakouts for short-term trading, reducing the cost incurred in spreads.

What currencies to trade in the London session?

 Currency pairs such as  EUR/USD, GBP/USD, USD/CHF, and USD/JPY represent the best currency pairs for trading in the London session based on low spreads,  volatility, trading news impact. However, based on your analysis, any currency pair that shows a strong rising or downtrend can be traded.

No currency pairs can expressly be excluded as the best currency pairs for the London forex session. However, specific pairs can aid by having low spread cost because of high volumes, proving beneficial. The currency pairs are usually traded in high volume in the London forex market. Moreover, specific currency pairs are affected during the overlap because of the inter-bank activities between London and the United States. These currency pairs include EUR/USD, GBP/USD as well as USD/JPY. This can work best for traders using volatility-friendly trading strategies since these currency pairs become extremely liquid in times of overlap.

Trading Breakouts in the London Forex Session

Trading with breakouts in the London session is more or less similar to trading with breakouts in other sessions with a plus of experiencing volatility and liquidity right from the start. While aiming at trade breakouts, the traders have an eye for support and resistance for plotting their trades. It helps in risk management more than anything else.

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The traders should have close stops and keep them in sync with the trend line prevalent. If this is done, the chances of facing losses are reduced, and even if the support and trend line breaks, the loss would be limited. However, if the strategy holds on tight, then in all cases, the trader would have a favorable ratio of risk and reward. With increased volatility and liquidity, the chances of using breakout strategies become favorable.

Having acquainted you with the basics of the London forex session, we would now provide you with specific tips that can further your success in the trading session.

Strategies and Tips for Trading in London Session

To make the maximum out of London forex trading, you must be well versed with the functioning of the foreign exchange market. In addition, to capitalize appropriately on the volatility and liquidity of the London forex session, you must employ appropriate leverages while trading.

Since the London forex session works in sync with the New York session and the Asian Forex session, you must acquaint yourself with the characters of these markets. Finally, to conclude and emphasize the article’s key points, we will reiterate them for you.

  • In the London session, there would be an increase in volatility and liquidity.
  • There will be more options of using breakouts in the session
  • Keep your eyes on the overlap of the London forex session and New York trading session to capitalize on the increased volatility and liquidity
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Best Currency Pairs to Trade During London Forex


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