Forex Learning – Forex Trading In London Sessions and Average Range of Pips
As Asian market participants begin to close stores, their European counterparts have just started their day.
Although there are several financial centers across Europe, this is London followed by market participants.
Historically, London has always been in the center of commerce, thanks to its strategic location.
No wonder if this is considered as the world’s forex capital with thousands of businesses doing transactions every minute. About 30% of all forex transactions occur during the London session.
Here is a table of London session pip pipes from the major currency pairs.
The value of this pip is calculated using the average past data. Note that this is NOT an Absolute Value and may vary depending on liquidity and other market conditions.
Which Pair Which Should Be Traded?
Due to the volume of transactions taking place, there is so much liquidity during the European session that almost all currency pairs can be traded.
Of course, it may be better to stick with the major currencies (EUR / USD, GBP / USD, USD / JPY, and USD / CHF), because this spread is usually very tight. For retail traders spread this major currency is 3 pips.
In addition, the pair is usually directly affected by news reports or economic data releases that come out during the European session.
You can also try yen mergers (more specifically, EUR / JPY and GBP / JPY), as these tend to be very volatile at this point. Since this is a cross-currency pair, the spread may be slightly wider. There is a range of 5 – 7 pips.