The Forex market is open every day for 24 hours, but not every trading time is equally available. London and New York are the busiest and most liquid periods in the market—hence, the best times for traders to gain from price movements. Knowing how to trade these sessions effectively will not only enhance your trading strategy but also bring your trade to a higher level of profitability.

The London & New York Trading Sessions

The four main forex market sessions are Sydney, Tokyo, London, and New York. However, London and New York are the two sessions that are the most active because of their high volatility, big trading volumes, and significant price action.

London Session (8:00 AM—5:00 PM GMT): The session is the most volatile one in Forex trading, and every day, about 35% of the total daily Forex volume comes from major financial activities like London, Frankfurt, and Zurich.

New York Session (1:00 PM—10:00 PM GMT): The New York session conflicted with London for about 4 hours, so the Forex market was most volatile during this time. The major institutes like banks, hedge funds, and retail traders have heavy volumes, leading to serious trading action throughout this session.

Best Currency Pairs to Trade

This period during the London and New York sessions turns out to be the most dynamic when it comes to major currency pairs, which renders them as a hunting ground for Forex trading.

• EUR/USD– This is the most popular currency pair, and there are small spreads and a lot of liquidity.
• GBP/USD- It is known for its volatility and movements, which are considered small in size over the intraday period.
• USD/JPY- A pair of a high size of liquid assets that show quick response to the U.S. and foreign economic situation.
• USD/CAD– Traders use Canada and the US for this particular pair for oil prices and economic data.

Trading Strategies for the London & New York Sessions

Since these periods are experiencing a great variation in price, it is easier to spot them to breakout trading. 

• First, pick apart primary support and the levels of resistance before London opens. After a breakout has been confirmed, mainly from support or resistance, high-volume trading must follow. Improving the trade through buying a confirmation a profit point is beyond the breakout level.
• Trend following strategy: In this strategy, trends around the London-New York overlap have the potential to be very strong on account of the momentum of the market. Moving averages (for example, 50 EMA and 200 EMA) are important in determining if there is a trend. Following the retracement, go for the traders that belong to the line of the trend. The conduct of the take-profit process at large support/resistance zones would be quite beneficial.
• Trading opportunities are available when economic data releases get posted during such sessions. The NFP, CPI, and central bank decisions are some of the news events that traders should monitor. At the same time, use the currency pairs that are hit directly by the news of the event. After major news events, use pending orders to enter into traders.

Risk Management Tips

Use Stop-Loss orders. Volatility causes rapid price changes; hence, set stop-loss rates always. Never use over-leveraging; use trading with the right techniques, and management risk is made possible with leverage that is too minimal; others with high leverage tend to receive massive losses.
Always follow the Economic calendar; traders have to look for some big news releases that are going to potentially move the market. 
Stick to a trading plan; you can set your entry, exit, and risk management decisions before you go into the trade.

The Final Thought

Traders generally consider the London and New York sessions the most profitable trading hours due to high liquidity and volatility. Through the application of good trading strategies, picking the right currency pairs, and managing risk the right way, traders can form a higher probability of successful trading. No matter if you are into breakouts, trends, or news trading, your forex trading experience will still be improved to a great extent by considering how to carry along these sessions.