Die besten Währungspaare für den Handel während der Londoner Sitzung

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The London trading session provides beginner and professional forex traders with the best periods. The sessions have low spreads, high liquidity, and increased volume offering more opportunities for traders to make more profits.

However, eyeing the wrong currency pairs may negatively affect your actions. You will experience low trading volumes, consolidation, and pairs that do not affect the price action. Therefore, picking the right currency pair is vital for the best results.

Image showing the Main trading Session in London

Tips and Strategies for Trading During the London Session

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. New forex traders need to familiarise themselves by researching the basics of trading.

The London trading session comes with unique characteristics that all traders should learn. Some of the main points to take into consideration while trading includes:

  • The London session comes with high volatility and liquidity
  • The London session experiences more breakouts
  • It is important to watch for the overlap occurring between the London to New York sessions for increased liquidity and volatility

Therefore, the tips for a successful trade include:

  • Improve your trading skills and knowledge
  • Outline all your objectives and trading style
  • Identify the best trading platform and a good broker
  • Be consistent with one methodology
  • Identify the best entry and exit points and stick to them
  • Have a proper risk management plan
  • Minimize the number of losses and understand why you lost before trading again
  • Perform in-depth analysis during weekends to prepare for the coming week
  • Have everything put down on paper

What are Currency Pairs?

Currency pairs are the measure of value between currencies. The currencies are split into the base currency and secondary quote currency. The most common currency traded globally is the EUR/USD, where the value represents how much US dollars is needed to purchase one unit of Euro.

Image showing the base currency and quote currency

Every currency pair contains a bid, and an ask price. The bid price is the maximum value the buyer is willing to pay for the currency, and the asking price is the lowest price the seller is willing to accept. The bid-ask spread is the difference between the asking and bidding price.

Some traders love trading in currency pairs with low spreads since it reduces the overall costs. Others use volatile pairs with high spreads Und low liquidity to capitalize on the fluctuating gaps to make profits.

The Best Currency Pair to Trade During London Session

EUR/USD Pair: Best for Smaller and Frequent Earnings

The Euro/USD pair is the most popular trading in London and the entire forex market. It is popular because of its low spread of about 0.1 pips. It allows traders to start trading with small capital and still make high profits.

The Euro/USD pair represents almost 20% of the trading volume in the forex market. The variable spread ranges between 0.1 to 3 pips, while the fixed spreads range from 1.3 to 5 pips. The pair is best for forex scalping since it experiences a stable market throughout the year. Therefore, it is perhaps the best pair for smaller and frequent profits.

best forex pairs to trade during each session

GBP/USD Pair: Low Spread Pair with high Fluctuation

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.

These characteristics make it an ideal pair for day traders who wish to take advantage of the price fluctuations since they dip in and out at a quick pace. It is also best for other short-term trading options, such as swing trading.

However, performing technical analysis before trading in the GBP/USD pair is important. The minimum spread is 0.9, with a margin range of 3.3%.

EUR/JPY Pair: A Non USD Pair with Low spreads

This pair is ideal for traders more familiar with the two economies. The currency pair is sensitive causing large movements. When using this pair, expect to experience major shifts. However, the main advantage of this pair is that it reduces the losses you are likely to incur because of the low spreads.

The pair has a daily range of 1.9% and a spread range of 0.5 to 5.7 pips.

EUR/GBP Pair: Bet for Experienced Traders

The Euro to Great Britain pound is among the strongest trading pair in the forex market. It is because of the region’s proximity and the historical trading history. However, the economic impact of Brexit made the pair more volatile in the past few years.

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%.

best forex pairs to trade during each session

What Could Affect Currency Pairs in the London session?

Government Interference

Elections, trade wars, or political instability could affect the forex pair. Governments directly impact the economy, leading to an increase or decrease in currency value.

Changing Interest Rates

Financial stability is crucial since making profits is the main goal for every forex trading. It is important to check the interest rates provided by central banks.

Country’s Economic Data

All traders must analyze each nation’s economic data to see how the currency pair performs. This data provides insight into inflation rates, employment, and GDP.

Which is the Best Forex Pair to Trade in the London session?

There is no best currency pair to trade in the London forex market. However, some pairs will reduce the spread because of a high trading volume allowing traders to enjoy cheap costs. The EU/USD pair could be the best to trade in due to high volumes in the London session.

The EUR/JPY, GBP/USD, and GBP/EUR are affected by overlap created by the lack of inter-bank activities between the regions. However, they are still suitable for skilled traders who understand the volatile nature.

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Frequently Asked Questions About Best Currency Pairs to Trade London Session

  • Which Pair is Easy to trade in?

    It is impossible to determine the perfect currency pair. Therefore, it is important to identify a proper strategy that reduces risks associated with forex trading.

  • Which are the Most Profitable Currency Pairs?

    The world’s best currency comes from different continents and represents some of the most successful economies. The main forex pairs to trade in the London session include:

    • GBP/USD
    • EUR/USD
    • EUR/JPY
    • EUR/GBP
  • When does the London Session begin?

    The London session begins immediately after the Tokyo and New York sessions. This period falls between 0700hrs to 1600 hours. However, the New York session begins at 1200hrs creating a huge overlap between the trading sessions.