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Glossary of Trading Terms

London session Definition

What Is the London Session and When Does It Start?

The London session refers to the period during which the London financial markets are open for trading. As the largest forex trading centre in the world, London generates a disproportionate share of global daily forex volume — typically accounting for over 30% of total FX turnover. The session is defined by deep liquidity, tight spreads, and high volatility.

London Session Hours

Time Zone Session Open Session Close
GMT (Winter) 08:00 17:00
GMT+1 (BST – Summer) 08:00 17:00
UTC 08:00 17:00
Singapore (SGT) 16:00 01:00
New York (EST) 03:00 12:00

Why the London Session Matters for Forex Traders

The London session overlaps with the tail end of the Asian session in the morning and the opening of the New York session in the afternoon. The London-New York overlap (approximately 13:00–17:00 GMT) is widely considered the most liquid and active window in the entire forex trading day — spreads tighten further and price movement intensifies.

Which Currency Pairs Are Most Active?

Currency pairs involving EUR, GBP, and CHF see their highest daily volume during the London session. The most actively traded pairs include:

  • EUR/USD — the world’s most traded currency pair

  • GBP/USD — heavily driven by UK economic data released in this session

  • EUR/GBP — tightest spreads during London hours

  • USD/CHF — sensitive to European risk sentiment

London Session: What to Keep in Mind

As a precaution, the high volatility that defines the London session also increases the probability of stop-loss hunts and sharp reversals around major economic releases — particularly UK CPI, PMI, and Bank of England announcements. Traders should widen stops appropriately during these events or wait for the initial spike to settle before entering.

Trade During Peak Market Hours

The London session offers some of the best conditions for active traders — deep liquidity, tight spreads, and clear directional moves. Create your live VT Markets account or log in now to take advantage of the world’s most active trading window.

Risk Warning:Trading CFDs involves significant risk and may not be suitable for all investors. Losses can exceed your initial deposit. Please ensure you fully understand the risks involved before trading.

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