The Forex European/London Session.

Here are some neat facts about the forex European/London session:

• The London session crosses with the two other major trading sessions.  And London is a key financial center.   Thus, a large chunk of forex transactions takes place during this time. This leads to high liquidity and potentially lower transaction costs, i.e., lower pip spreads.
• Due to the large number of transactions that take place, the London trading session is normally the most volatile session.
• Most trends begin during the London session, and they typically will continue until the beginning of the New York session.
• Volatility tends to die down in the middle of the session, as traders often go off to eat lunch before waiting for the New York trading period to begin.
• Trends can sometimes reverse at the end of the London session, as European traders may decide to lock in profits.

Which Pairs Should You Trade?

Because of the volume of transactions that take place, there is so much liquidity during the European session that almost any pair can be traded.

Of course, it may be best to stick with the majors (EUR/USD, GBP/USD, USD/JPY, and USD/CHF), as these normally have the tightest spreads.

Also, it is these pairs that are normally directly influenced by any news reports that come out during the European session.

You can also try the yen crosses (more specifically, EUR/JPY and GBP/JPY), as these tend to be pretty volatile at this time.

Because these are cross pairs, the spreads might be a little wider though.

Learn to Currency Day Trade Forex

If you’d like to earn extra income trading on the Forex market, consider learning how to currency trade with Forex Smart Trade.   With their super-accurate proprietary trading tools and best-in-the-business, personalized one-on-one training, you’ll be successful.  Check out the Forex Smart Trade webinar.  It shows one of their trader’s trading and how easy, intuitive, and accurate the tools are.  Or try the Forex Smart Trade 14-day introductory trial for just TEN dollars.