The forex market is a global decentralized market that operates 24 hours a day, 5 days a week. The market is divided into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each trading session has its own unique characteristics and trading opportunities, and traders need to be aware of the opening and closing times of each session to take advantage of these opportunities. In this article, we will focus on the London trading session and the time it opens.
The London trading session is one of the most important trading sessions in the forex market, accounting for about 36% of daily trading volume. The London session is known for its high liquidity, tight spreads, and high volatility, making it a favorite among traders. The session is also significant because it overlaps with the New York trading session, creating a period of increased trading activity and volatility.
The London trading session opens at 8:00 AM GMT (Greenwich Mean Time), which is also referred to as UTC (Coordinated Universal Time). However, during daylight saving time (DST), the opening time is shifted by one hour to 7:00 AM GMT. This means that the London trading session opens at different times depending on the time of year and the time zone you are in.
For traders in the United States, the London trading session opens at 3:00 AM EST (Eastern Standard Time) during the winter months and 2:00 AM EDT (Eastern Daylight Time) during the summer months when DST is in effect. Traders in other parts of the world will need to convert the opening time to their local time zone.
It is important for traders to be aware of the opening time of the London trading session because it can have a significant impact on trading strategies and market conditions. The first hour of the London session is known as the London open, and it is characterized by high volatility, especially in currency pairs that involve the British pound (GBP). Traders who want to take advantage of this volatility should be prepared to trade during this period and adjust their risk management strategies accordingly.
In conclusion, the London trading session is an important trading session in the forex market, accounting for a significant portion of daily trading volume. The session opens at 8:00 AM GMT (7:00 AM GMT during DST), and traders need to be aware of this opening time to take advantage of trading opportunities and adjust their trading strategies accordingly. By understanding the characteristics of each trading session and the opening and closing times, traders can improve their chances of success in the forex market.