London Session
Also known as: European Session
The period of the trading day when the London financial center is open and actively trading.
Plain-English Meaning
The forex market operates 24 hours a day by rolling through global financial hubs. The London session represents the European business day. Because London is considered the historic capital of foreign exchange, this session handles massive transaction volumes.
Why It Matters
The London session is notorious for introducing heavy liquidity and defining the daily trend for many major currency pairs. The period where the London session overlaps with the New York session is widely considered the most active and volatile time of the day.
Simple Example
A trader looking for strong, clear price movements in pairs like GBP/USD or EUR/USD will often wait for the London session to open, looking to capitalize on the surge of European institutional volume.
This educational example uses selected assumptions for reference calculation purposes. Real conditions may vary by broker, exchange, or instrument.
Beginner Mistake
Assuming the exact opening hour will immediately present a clean trade direction. The initial opening minutes of the London session can sometimes feature erratic "fake-out" movements as institutional orders are processed.