London session

The London session refers to the trading hours when financial markets in London are active, typically from 8:00 AM to 5:00 PM GMT. During this period, major financial institutions, banks, and corporations conduct significant forex transactions. This overlap with the Asian session's close and the New York session's opening often leads to increased trading activity and tighter spreads. It is a critical period for price discovery in many currency pairs.

For retail traders, the London session often presents opportunities due to its elevated liquidity and volatility. Spreads tend to be narrower, potentially reducing trading costs. However, increased volatility also means larger price movements, which can lead to higher risk if not managed properly. Traders should use appropriate position sizing and stop-loss orders to mitigate potential losses during these active hours.