London Session
What Is London Session?
The London Session is one of the busiest and most important trading sessions in the world. It takes place when financial markets in London are open, and during this time trading activity is usually at its highest. Many traders prefer this session because prices often move more, creating more opportunities to trade.
London Session Time (GMT and EST)
- London session runs from GMT: 8:00 AM to 5:00 PM GMT.
- In EST (Eastern Standard Time), the London session runs from 3:00 AM to 11:00 AM EST.
Why Is the London Session Important?
The London trading session is important because:
- It overlaps with the Asian session at the beginning and with the New York session toward the end.
- These overlaps create times of strong price movements and higher trading activity.
- Many large banks, institutions, and companies trade during this period, making it very liquid.
This means traders can find opportunities, but they also need to be careful because prices can change quickly.
London Session Pairs
During the London session trading time, some currency pairs become more active than others. The most commonly traded London session forex pairs include:
- EURUSD – often experiences strong movements.
- GBPUSD – the British Pound and US Dollar pair is very active.
- USDJPY – movements can be significant when London overlaps with Tokyo.
- EURJPY – combines European and Asian trading activity.
Because of this, many traders look at these pairs during London session to catch potential moves.
Other Glossary Terms
L
- Leverage
Leverage allows traders to control larger market positions with less capital by borrowing funds from their broker, amplifying both potential gains and losses in proportion to the leverage used.
- Liquidity
Liquidity in trading means how quickly and easily an asset can be bought or sold without major price changes, reflecting market activity and the ease of entering or exiting positions.
- Limit Order
A limit order is an instruction to buy or sell an asset only at a set price or better, giving traders control over their entry or exit points without constant market monitoring.
- Long Position
A long position means buying an asset with the expectation that its price will rise, allowing the trader to sell later at a higher price and make a profit.
- Lot Size
A lot size represents the total units of a currency you control in a trade, determining how big or small your position is, such as standard, mini, micro, or nano.
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