London session definition
The London session—also known as the European session—is one of three trading sessions responsible for keeping the forex market open 24 hours a day. The session opens as the Tokyo (Asian) session winds down and close several hours after the New York (North American) session begins. The London session runs during the city’s official business hours: from 7:30 a.m. to 3:30 p.m. GMT.
The London session experiences the majority of forex trading of the three main periods and is known for increased volatility and higher liquidity following a typically drowsy Tokyo session. London has long been the hub of forex, with 43% of all transactions happening in London. The final four hours of the London session experience the highest volume of trades due to its overlap with the New York session.
What currencies trade in the London session?
Major currency pairs greatly reduce in spread due to the session’s high volatility and increased trading. These include EUR/USD, USD/JPY, GBP/USD, and USD/CHF.