When are popular times to trade forex in the UK?
Typically, the UK forex market is most active just after the open of the London session at 8am (UK time). At this time, liquidity and volatility will likely be high as traders begin interacting with each other. Trading will usually become less liquid at around 10am (UK time), and it’ll pick up again after the US markets open around 12pm (UK time).
Trading forex during the London session in the UK
Popular forex pairs to trade during the London session are the majors such as the GBP/USD cross or the EUR/GBP cross. This is especially true during the overlap between the London and New York markets, as well as the European session which is open during almost identical hours to the London session.
The Tokyo-London crossover is historically not as busy as the London-New York crossover because of the simple fact that there’s a greater crossover in terms of trading hours between London and New York than between London and Tokyo.
Trading forex during the New York session from the UK
The New York session has the biggest overlap with the London session, and so it’s likely a good time to trade forex in the UK, especially the GBP/USD cross. The New York session is the last trading window to close on the 24-hour forex trading clock, and it often experiences high trading volume.1
As a result, traders seek to squeeze the last bit of potential profit out of that trading session’s news announcements and events, which can affect the prices of currencies.
Many USD crosses experience their highest trading volumes during the New York session, and this represents a considerable slice of the forex market, with the USD included in more than 88 percent of forex transactions in 2022.2
Trading forex during the Tokyo session from the UK
The Tokyo session is perhaps the least liquid of the major sessions to trade forex from the UK because of the time difference and the limited crossover of only one hour between London and Tokyo. However, you can still trade forex during the Tokyo session from the UK.
Active pairs to trade during the Tokyo session are any JPY crosses, such as USD/JPY or EUR/JPY. There’s also a lot of liquidity and volatility in the AUD/JPY currency pair during the crossover between the Sydney and Tokyo sessions. This is one of the most volatile currency pairs on the market and the second most traded JPY cross, behind USD/JPY.
Learn more about the most volatile currency pairs
Trading forex with us
You can trade different forex sessions from the UK with financial derivatives such as spread bets and contracts for difference (CFDs). These financial products enable you to trade on the price movements of currency pairs such as GBP/USD without taking direct ownership of either.
With us, you can use these spread bets and CFDs to speculate on forex prices rising or falling. The accuracy of your directional assumption determines whether you make a profit or incur a loss; and the extent of the market movement in your favour or against your position determines the amount in profit or loss.
Spread bet and CFD prices are based on the underlying market, and they’re traded with leverage – giving you full market exposure at a deposit, known as margin. However, while leverage magnifies potential profits, it also amplifies possible losses. Due to the use of leverage, your losses may exceed your initial capital outlay. So, it’s important to manage your risk.
