The foreign exchange (Forex) market is the largest financial market globally, and the value of the daily trading volume is estimated at approximately $5.1 trillion. Hedge funds, banks, and other large financial companies are the major traders in the Forex market. Usually, the Forex market is open for trading all 24 hours of the day and five days of the week, starting Monday and closing on Friday.
Saturday and Sunday are the weekend holidays for the Forex market. When the trading volumes are low due to holidays, off-market trades can cause changes in foreign exchange rates with noticeable fluctuations. In addition to the holidays on weekends, other public holidays affect the Forex market, changing it. These public holidays are Christmas, New Year’s Eve, and Thanksgiving Day.
If you want to learn more about when the market opens and about trading sessions, visit our page.
Forex trading times on Christmas are different because of nonworking hours – see below.
Forex market opening after Christmas
The market will be closed during Christmas 2022. because 25. December Christmas Day is Sunday. During the New year holidays in 2022/2023 forex market will be closed on Mondays 26. December (partly) 2022 and the whole day on Monday, January 02. 2023.
Look example of an Avatrade broker:
See forex trading during Christmas:
|23/12/2022||Early Closing 18:50|
|26/12/2022||Late opening. Partially working time.|
|30/12/2022||Early Closing 18:50|
Table: Forex trading times Christmas
When Does Forex Market Open After Christmas?
The forex market will open after Christmas on 26.12.2022. on Monday night. Christmas Day this year is on Sunday, so Monday is Federal Holiday in many countries. Most for the day, during 26. December 2022. forex market will be closed.
Some Forex traders would like to find out when does Forex market opens after Christmas. Usually, the Forex markets remain closed on December 26, after Christmas, called Boxing Day. This day is a public holiday in Canada, Europe, and Australasia. After a Christmas Day and Boxing Day holiday, the Forex market will open on the 28th. However, this Forex market is mainly open to different countries’ central banks; it is often closed for retail traders.
In Greece, the Orthodox Church, Eastern Europe, including Russia follows the Julian Calendar, and Christmas is celebrated on January 7. Hence the Forex markets in these countries will remain closed on January 7 and on January 8.
Please check this website’s Forex and Bank Holidays Calendar in detail.
After considering these changes, the market conditions change after the holidays, and traders may alter their trading strategy. Since most brokers also take a public holiday, traders cannot trade without their brokers. Since the Forex market is not located in a specific place, it is always open. However, all transactions are completed using online communication. Traders should be aware that though it may be a public holiday in specific countries, the international Forex market never closes.
Internationally, the Forex market can be classified into four geographical regions Asian, American, European, and Pacific. A city is a financial center for each region, and the time frame for completing the various economic activities is also specified. Most people believe the Forex market is closed on the weekend; they should realize that it is only closed for retail traders. It is always open for central banks of different countries and associated organizations. Hence the retail trader will find many changes when the public holiday is over.
Does the forex market close in December?
The forex market is officially closed in December on Christmas Day (December 25) and New Year’s Day (January 1). Forex market is primarily headquartered in London, New York, and the EU, and all these brokers celebrate Christmas Day and New Year.
During the New year holidays in 2022/2023 forex market will be closed on Mondays 26. December 2022 and Monday, January 02. 2023.
Forex market on Christmas
On Christmas and New Year, the forex market will experience a considerable change in liquidity, significantly impacting the market open, except for low trading volumes and volatility. As a result, the forex market opening after the Western holiday season can be highly unpredictable, and even significant trends can be changed.
To sum up:
What holidays is the forex market closed?
Holidays that the forex market is officially closed are Christmas Day (December 25>) and New Year’s Day (January 1). However, on all other workweek days (Monday till Friday) forex market is open.
Closed Forex market changes during a public holiday
Trading conditions in the closed Forex market during public holidays.
– Brokers are not available
The brokers are closed during public holidays, so the market is also closed for the retail traders who rely on brokers. So the Forex market is less volatile since the trading volume is also lower.
– Lower trading volumes
In the Forex market, trading volume is the amount of money traded during a specific period. Since the Forex market is closed for retail traders on Christmas Day, the volatility is significantly reduced because of the lower trading volumes.
– Low Volatility
The main reason for the lowered volatility is the reduced trading volume. Due to the non-availability of brokers, the trading volume and volatility are also decreased.
Most financial markets in a country are closed during a public holiday. When there are public holidays in many countries like Australia, China, Europe, the UK, and the US, all the financial markets are closed, which significantly impacts Forex trading.
Forex trading on public holidays
Usually, only beginners to Forex trading or those who have finalized a trading strategy on holidays will trade on public holidays. Each trader has a different opinion on whether it is advisable to trade on public holidays. Since beginners to Forex trading do not wish to lose the opportunity to make additional money, some beginners will also trade on holidays. It is observed that these traders will not make an effort to understand market conditions and think they should not lose the opportunity to make some additional money. However, they do not realize that the market conditions are completely different on holidays.
A majority of the experienced traders in Forex claim that trading on holidays is not profitable since Forex prices could change at any time. Moreover, the leading players in the Forex market are closed on holidays. Hence the liquidity is less, making it difficult for the traders to analyze the market and trade. Since these leading players are absent during bank and public holidays, so it impacts the Forex market. Hence traders should be aware that they may be able to make some profit during holidays, yet it is so less that it is not worth the effort.
Reasons for not trading Forex during holidays
Since most financial markets are closed during a public holiday, the liquidity is less. It is advisable to avoid Forex trading during public holidays for the following reasons.
- – Higher spreads
The spread is the difference in the prices at which a Forex trader can buy or sell a related asset. Forex brokers will usually increase the spread for traders on public holidays.
- – Liquidity
On public holidays, the large companies and banks are closed for trading, so the liquidity is significantly reduced. These organizations decide the liquidity of the market with their high trading volume.
- – Volatility
Due to the absence of large traders, the Forex market’s liquidity is reduced, lowering the volatility. As a result, it is also difficult for a trader to make much money trading.
Hence, most Forex traders do not trade on public holidays since the higher spreads, lower liquidity, and volatility reduce the possibility of making a reasonable profit. Yet, some traders have developed a trading style that allows them to make money even when there is less liquidity and most traders are taking a break.
During public holidays, the major players like banks are not involved in trading, altering the market conditions significantly. As a result, the Forex market is not stable during the Christmas holiday week, with some brokers on holiday for the entire period. Usually, the Forex market will open on December 28, 2020. after Christmas in most western countries. Since most traders consider trading on public holidays risky, they avoid Forex trading on these holidays.