London trading session
Family VII · Market & styles
Not to be confused with asian trading session, new york trading session, trading session.
London trading session refers to the hours when financial markets in London are open for business, generally aligning with the local business day. It is a major session because London is a leading centre for foreign exchange, fixed income, and equities trading. The session overlaps with other major sessions, influencing liquidity and volatility.[1]
Timing and global context
The London trading session typically runs from 08:00 to 16:30 local time, though exact hours can vary by market and instrument. It overlaps with the European session and partially with the New York session, creating a period of high liquidity. The session does not have fixed universal hours; they may adjust for daylight saving changes and specific exchange schedules.
Example: Overlap with New York
Suppose the London session runs from 08:00 to 16:30 GMT and the New York session runs from 13:00 to 21:00 GMT. The overlap is from 13:00 to 16:30 GMT, a 3.5-hour window when both major markets are active.
Market activity
During the London session, trading volumes in currency pairs, especially those involving the euro and sterling, tend to be high. Economic data releases from the UK and Europe often occur in this window, which can increase volatility. Liquidity may be lower at the start and end of the session compared to the overlap with New York.
Often confused with
- asian trading session
- The Asian trading session covers the hours when major Asian markets such as Tokyo and Hong Kong are open, typically starting before London and ending as London begins; the visible sign is the focus on Asian currencies and the earlier time zone.
- new york trading session
- The New York trading session covers the hours when US markets are open, typically starting after London has begun and ending later; the visible sign is the emphasis on US economic data and the afternoon overlap with London.
- trading session
- A trading session is any defined period when a market is open, without specifying a geographic centre; the visible sign is the absence of a city name in the term.
See also
References
- ↑ Trading hours published by the exchanges and venues concerned. Session boundaries shift with daylight saving in each region and are not the same all year.