The European Session

At 8:00 GMT the London session opens and Tokyo is in the last hour of trading.At this time a large number of traders are participating in the market. This results in larger movements compared to the Asian session alone, because day traders are exiting positions in Asia, whilst day traders are entering into positions in Europe.

During the European session there are no currency pairs that behave differently from normal, so in general, all pairs can be traded. There is also substantially higher volume in these sessions and so the spreads tend to be smaller.

There is also more liquidity in the London session than any other session as the London market accounts for almost 38% of the total volume – more than New York (17%) and Japan (6%) put together. Trading when the London session is open is a good start to ensure that you are trading in a highly liquid market.