European trading session opening hours. Features of trading this time of day, what assets to choose to profit from high volatility and activity.
The European trading session is considered the most volatile of the 4 trading periods on the market. This is primarily due to the coincidence of the opening of the trading session with the Asian market and the end of trading on it during the U.S. exchanges.
The simultaneous activity of 5 large financial markets, such as London, Frankfurt, Paris, Luxemburg, and Zurich, also contributes to this factor. Knowing the opening hours on the European markets and the behavior of major currency pairs and securities, a trader can choose the most effective trading strategy for each of the periods, particularly for the European trading session.
Working hours of European trading session
The European session is the second trading session of each trading day. Europe trades between 7 AM and 4 PM GMT. These hours change when daylight savings time is observed.
Although three major trading floors open earlier (Zurich, Frankfurt, Paris, Luxembourg), the main trading center, the London Stock Exchange, begins its work at 08:00.
Since more than 30% of all transactions take place on the London trading floor, it is customary to correlate the opening time of trading in Europe with the beginning of trading in London.
Stock market assets
The European session opens at 7 a.m. GMT and closes at 4 p.m. At this time starts trading on the largest stock exchanges in Europe, such as London LSE, Austrian WBAG, Berlin, Munich, and Hamburg stock exchanges in Germany, the Irish Stock Exchange, Italian ISE, Spanish BM in Madrid, Swiss SWX, Stockholm Stock Exchange of Sweden, as well as Euronext and OMX pan-European exchange groups.
Also, during the European trading session the Moscow Stock Exchange opens for trading.
During the European session, the major European exchanges trade the fundamental European indices:
- Euro Stoxx – a group of indices of 600 companies with different capitalizations, located in 18 countries of the Eurozone.
- FTSE – an index of the 100 largest companies traded on the London Stock Exchange
- SAS 40 is an index of blue chips of Euronext Paris exchange.
- DAX is an index of 30 large-cap companies of the Frankfurt Stock Exchange
- IBEX 35 – Blue Chip BM Index
- FTSE MIB – index based on 40 largest companies on ISE
- OMX STKH30 is a Swedish index of the 30 largest-capitalized companies listed on the Stockholm Stock Exchange
- SMI – stock index of the 20 most liquid companies on the Swiss Exchange
- MosBeXchange Index – the Russian index of the shares of 50 blue-chip companies of the Moscow Exchange, calculated in rubles.
- RTSI – an index of shares of the 50 largest companies at the Moscow Exchange, calculated in U.S. dollars.
Currency pairs of the European trading session
During the trading session in Europe, the greatest volatility is currency pairs with national currencies of countries, which are traded. When trading these currency pairs, it is necessary to be extremely careful.
Currency pairs with the euro:
- EUR/USD – with the U.S. dollar
- EUR/AUD – with the Australian dollar
- EUR/CAD – Canadian dollar
- EUR/CHF – Swiss franc
- EUR/CZK – with Czech krone
- EUR/DKK – with Danish krone
- EUR/GBP – with the pound sterling
- EUR/HKD – with Hong Kong dollar
- EUR/HUF – Hungarian forint
- EUR/ILS – with Israeli shekel
- EUR/JPY – with Japanese yen
- EUR/MXN with Mexican peso
- EUR/NOK – Norwegian krone
- EUR/NZD – with New Zealand dollar
- EUR/PLN – with Polish zloty
- EUR/RON – with Romanian Leu
- EUR/RUB – with Russian rouble
- EUR/SEK – with Swedish krone
- EUR/SGD – with Singapore dollar
- EUR/TRY – with Turkish Lira
- EUR/ZAR – South African rand
Currency pairs with the British pound sterling:
- GBP/USD – with the US dollar
- GBP/AUD – with Australian dollar
- GBP/BGN – with Bulgarian lev
- GBP/CAD – with the Canadian dollar
- GBP/CHF – Swiss franc
- GBP/CZK – with Czech krone
- GBP/DKK – with Danish krone
- GBP/HKD – with Hong Kong dollar
- GBP/HUF – with the Hungarian forint
- GBP/JPY – with Japanese Yen
- GBP/NOK – Norwegian krone
- GBP/NZD – with the New Zealand dollar
- GBP/PLN – Polish Zloty
- GBP/RON – with Romanian Leu
- GBP/SEK – with Swedish krone
- GBP/SGD – with the Singapore dollar
- GBP/TRY – with Turkish Lira
- GBP/ZAR – South African Rand
Pairs with Swiss franc:
- AUD/CHF – with Australian dollar
- CAD/CHF- with the Canadian dollar
- CHF/ BGN – with Bulgarian lev
- CHF/JPY- with Japanese Yen
- CHF/RON – with Romanian lei
- CHF/TRY – with Turkish Lira
- NZD/CHF – with the New Zealand dollar
- USD/CHF – with the US dollar
One should also pay attention to currency pairs of the U.S. dollar with the Swedish, Czech, and Danish krone, as well as Hungarian forint, which volatility is also slightly increased during the European session, especially in its last hours, when the European session overlaps with the U.S.
Peculiarities of trading during the European trading session
European session intersects with two other sessions: Asian and American. During these sessions volatility of crossed currency pairs of these regions increases significantly, which makes these periods very dangerous for beginners, but interesting for scalpers.
A distinctive feature of the European Session – powerful movements and quick quotation change.
The most part of market tendencies is formed when London traders come to the trades. During the European session, false movements are not uncommon – European dealers check the market, determine the accumulation of stops, probe support, or resistance lines.