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Best Forex Pairs to Trade During London Session

Having acquainted you with the basics of the London forex session, we would now provide you with specific tips that can further your success in the trading session. You must be fully aware of the working elements of all trading markets because it helps you to emerge in the London session of forex trading. It is appealing to traders because it offers you chances to gain profit and get success. The reason for its popularity is nothing except its volatility and safety from risks. This currency pair can easily manage risk and increase the chances of rewards.

london session forex pairs

Most traders start preparing for the New York trading session during this period. When the US trading markets open, the London session experiences a second surge. London session represents one of the most active forex trading times, covering a busy period of the London stock exchange and the most liquid period of the forex trading market. There is no best session for forex trading and this is why; to say there is a best forex session for trading is to mean that all other forex sessions are not as profitable, which is not true. Every forex trading session is unique and has its respective trading volume.

Trading the Overlap: The NY Breakout Strategy

If we compare the London session to the Asian session, or even New York session, it’s clear that the volume and opportunities make the session worth trading. He is managing a team of 5,000 traders at Audacity Capital London Trading Floor. If you want to better see a trading session on your MT4 chart like below, please download the MT4 session indicator. Amazingly, it will provide you with different options to trade with breakouts than any other session. The US session can very well trade like its European counterpart during this overlap.

london session forex pairs

The London forex session is one of the most liquid trading sessions. Due to the high volume of buying and selling, major currency pairs can trade at extremely low spreads. Day traders looking to target short moves may be interested in finding trends and breakouts to trade so as to reduce the cost they pay inspreads.

Although there is always a market for this most liquid of asset classes called forex, there are times when price action is consistently volatile and periods when it is muted. What’s more, different currency pairs exhibit varying activity over certain times of the trading day due to the general demographic of those market participants who are online at the time. To make the maximum out of London forex trading, you must be well versed with the functioning of the foreign exchange market. In addition, to capitalize appropriately on the volatility and liquidity of the London forex session, you must employ appropriate leverages while trading.


The traders should have close stops and keep them in sync with the trend line prevalent. If this is done, the chances of facing losses are reduced, and even if the support and trend line breaks, the loss would be limited. However, if the strategy holds on tight, then in all cases, the trader would have a favorable ratio of risk and reward.

The Best Pairs to Trade During New York Session – New York Session Forex Pairs

This means, in essence, there your spreads are going to be much smaller, there is going to be less consolidation and more ‘clean’ opportunities for you to capitalise on. If you’re interested in why the volume increases, Investopediabreaks this down perfectly. Some traders love trading in currency pairs with low spreads since it reduces the overall costs. Others use volatile pairs with high spreads and low liquidity to capitalize on the fluctuating gaps to make profits.

During the whole London session, I would try to avoid AUD and NZD pairs as much as possible. It is important to note that volatility and liquidity increase at the beginning of the London session. Therefore, one must be careful while trading during this session.

The European session takes over in keeping the currency market active just before the Asian trading hours come to a close. This FX time zone is very dense and includes a number of major financial markets. London has taken the honors in defining the parameters for the European session to date. Use the below Forex Market Clock to check where your current time is in relation to the 4 major forex trading sessions . In conclusion, the best forex pairs to trade during the London session would be GBP and EUR pairs, as they will have the lowest spreads and highest volumes.

Euro Forecast – EUR/USD Plunging Into Parity as US Dollar Bulls Run Amok

The volatility is also attributed to the changes in interest rates announced by regional banks. This announcement can cause one currency to strengthen against the other, increasing the volatility. The pair has a minimum spread of 1.1 pips with a margin range of 3.3%. However, performing technical analysis before trading in the GBP/USD pair is important.

The London session is the most active and fast trading session in the trading world. It also keeps focusing on overlaps and the most appealing characteristic is its high volatility. Strategies like range trading are more successful in the other half of the trading day because as the volatility lowers, it becomes tough to break spectre trading platform the support and resistance levels. The opening hours of the New York session witness more volatility than the other half of the day. You can employ different methods to capitalize on these different volatility levels. The Sydney session comes at the end of the New York session and starts two hours before the Tokyo session.

This leads to high liquidity and potentially lower transaction costs, i.e., lower pip spreads. Most forex trading experts recommend the British pound to the US dollar pair due to its high volatility with low spreads. The pair is characterized by frequent price fluctuations, pip movements, and exchange rates. Therefore, it could result in large profits for any successful trader. However, one can also experience losses due to the high volatility. The session starts experiencing a decrease in trading between 1000hours and 1200 hrs UK time.

They likewise show a normal week by week, every day and hourly instability of the pair. In the event that you have ever traded in the Forex market or possibly watched value developments from the sidelines, you may have seen that the costs move non-directly on the diagram. These are the best currencies to trade during the London session.

When Can You Trade Forex: London Session

Currency pairs such as EUR/USD, GBP/USD, USD/CHF, and USD/JPY represent the best currency pairs for trading in the London session based on low spreads, volatility, trading news impact. However, based on your analysis, any currency pair that shows a strong rising or downtrend can be traded. DailyFX,the free news and research website of leading forex and CFD broker FXCM, delivers up-to-date analysis of the fundamental and technical influences driving the currency and commodity markets. Combined with the free charts and live rate updates featured on DailyFX, the DailyFX economic calendar is an invaluable resource for traders who heavily rely on the news for their trading strategies. Additionally, DailyFX serves as a portal to one the most vibrant online discussion forums in the forex trading community.

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