European Stock Trading Sessions – Everything You Have To Know

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  • What is a trading session?

A trading session is a period that matches a country’s daytime trading. Generally, the business that happens in the exchange from the opening bell in the morning to the closing bell is known as the trading session. 

A trading day can be classified into four sessions- Asia, Europe, North America, and South America. This is because the daytime schedules are completely different among the four continents. 

We will be discussing the European trading sessions and their whereabouts.

European Trading Session

While describing the European trading sessions, we can name two main centers where stock trading takes place. The two places referred to here include Frankfurt and London. The session in Frankfurt starts business at 08:800 CET, while the trading sessions in London open at around 09:00 CET. 

The London session is synonymous with the European trading sessions for a reason. The London session accounts for a massive 37% of the total stock and forex trading conducted in Europe. 

Now London is an economic center; it also turns out to be the center of forex trading in Europe. This makes London the most important commercial trading destination globally. Though there are trading sessions in Frankfurt, Amsterdam, and Milan, London trading session turn out to be the most important trade session, not only in Europe but also globally. 

You will be amazed to hear that its trade volume is so big at the very trading session that it is bigger than the New York and Tokyo put combined. 

Opening & Closing Time 

Here are the stock market trading hours in London-

London trading session, the greatest trading center in the world, begins its trading activities at around 7:00 GMT, and the session closes at around 16:00 GMT. 

The traders in Asia probably coincide with that of the European session. The Tokyo session clashes with the London session for one hour. This hour turns out to be a volatile hour for the Tokyo trading session. 

Liquidity

The liquidity in European Stock trading is very high. This is because the London session turns out to be the financial center of the globe. 

During some time of the day, the financial session of London overlaps with that of the New York session. It is due to the reason that the liquidity turns out to be the highest during that phase.  

Lunch Sessions

Another important characteristic of the London session is the lunch session. This session goes for around two hours. That is, during this particular period between twelve to two, the activities become a bit cold. Usually, the brokers have lunch with the customers. 

Tips For You To Dent Into The European Market 

Want to trade in the European markets? Here are some tips through which you can manage things. 

1. Study The European Market

The first thing that you need to do is to study the European markets. You had a clear idea of the STOXX Europe 600, the index that covers almost all the European markets. 

2. Follow The Different Stock Exchanges

You need to follow the different stock exchanges, including the Swiss Exchange, Tirana Stock Exchange, Eurex Stock exchange, and others. You will have to know about the activities covered in the stock exchange. This goes on to improve things drastically for you. 

What Else?

You are entering into a completely new trading market, so you need to take the help of the right broker. A qualified broker can provide you with information on trading. In addition, they have the right tools to ensure that your investments are valued.