What else should we know about the London trading session? 1. Although we’ve noted that the London trading session crosses with Tokyo in the morning, it also crosses with New York’s one in the evening. That’s very important. 2. Due to this double crossing and huge liquidity of London trading time itself, there is no wonder that the major part of daily transactions take place precisely during the European session. This, in turn, leads to highest liquidity and the tightest spreads in the overall day. 3. But not all trading choices are so unclouded. The largest number of participants and transactions leads to greater volatility and larger moves on the market. This is a double-edged sword – it provides more great opportunities for trading as well as increased risk. 4. Very often, most trends begin during European session, but then a trend’s development could be different. Trends could reverse at the end of London session, if European participants decide to take profits or it can continue through New York’s trading time. 5. As a rule the London session has temporary decreasing in activity in the middle of the day. Many traders leave the office to have a lunch before the start of New York’s trading time. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.