In plain English
What London session means
London is a major FX center, so activity often rises when its business day begins. Many currency pairs see tighter spreads and heavier volume during London hours because banks, funds, corporates, and liquidity providers are all active. The term is a market convention, not an exchange-defined session.
Why it matters
London hours are important because they often set the tone for the rest of the day. Traders watch them for liquidity, price discovery, and news-driven moves in European pairs. The session is especially relevant for execution because spreads often improve when participation increases.
Example
If EUR/GBP has been quiet during the Asian hours, it may become more active after London opens as more dealers quote the pair and news from Europe enters the market. The increase is about market participation, not a separate venue.
Quick answers
Common questions
When is the London session?+
It is the period centered on London business hours. Exact clock times vary with daylight saving time and the way a broker defines its chart data.
Why do traders watch London hours?+
Because they often bring higher liquidity and more reliable price discovery for many major currency pairs.
Sources