Holidays Schedule
The market is open 24 hours a day, 5 days a week. The exception is major holidays, when one or more exchanges remain closed:
- Asian session is closed on December 31 - January 3, February 11, May 3, December 23-24.
- European session is not available on January 1-2, May 7, June 4, December 24-25.
- American session is closed on January 1-2, July 4 and December 24-25.
On these days, trading on the relevant exchange is completely suspended. There’s no need to think whether it is worth trading.
However, there are less significant holidays. Trading on such days continues but has its own characteristics.
Market Behavior During Holidays
Market events directly depend on the actions of traders. During any local holidays, Forex trading continues, however many traders choose to celebrate rather than trade. As a result, there are some changes in the market:
- Volatility drops. Due to the decrease in the number of participants, the chart makes only small fluctuations or completely goes flat. The potential profit during the holidays is very low.
- Sharp jumps. Despite low volatility, sharp price changes are also possible. They are rather an exception to the rule. However, if your position is open in the opposite direction, you will not have time to do anything. It is almost impossible to predict market behavior during the holidays.
- Liquidity goes down. A small number of participants also leads to a decrease in liquidity. This can cause a high number of slippages.
- Spreads get wider. Low liquidity can cause the cost of trading to skyrocket, and low profit potential can make it difficult to cover.
What to Do
The market during the holidays has more disadvantages than advantages. With the rising level of risk and high trading costs, the potential profit remains extremely low. It is very difficult to analyze the market during such periods. Especially for a novice trader. Therefore, we can safely say that the game is just not worth it. Better to refrain from trading during the holidays.
If you don't want to waste precious time:
- Analyze previous trading days
- Make changes to your trading plan if needed
- Adjust the settings of your trading robots, indicators, etc.
- Prepare for the upcoming trading days - mark future holidays, news releases, and so on.
There is one more way to spend this time with benefit - relax! If you ask world famous Forex traders, they will say that everyone needs a break. Even from trading. Spend this time with family, friends, doing what you really love (besides trading, of course). After resting, you will return to the market full of energy and ready to win. Use this chance!