When does the forex market open after Christmas?
The market for foreign exchange (Forex) is the largest financial market globally, and the value of the trading volume daily 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, 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 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 for most brokers only on:
Wednesday, 25 December 2020
Tuesday, 31 December 2020 Open until 8:00 p.m. EET (server time)
Wednesday, 1 January 2021
See forex trading during Christmas:
|24/12/2020||Early Closing 18:50|
|31/12/2020||Early Closing 18:50|
Table: Forex trading times Christmas
So, When Does Forex Market Open After Christmas?
The forex market will open after Christmas on 28.12.2020. on Monday.
Some Forex traders would like to find out when does Forex market opens after Christmas. Usually, the Forex markets remain closed on 26th December, the day after Christmas, called Boxing Day. This day is a public holiday in Canada, Europe, and Australasia. After a holiday for Christmas Day and Boxing Day, the Forex market will open on the 28th market. 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 open 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 are also taking a holiday on public holidays, traders cannot trade without their broker. Since the Forex market is not located in a specific place, it is open all the time. However, all transactions are completed using online communication. Traders should be aware that though it may be a public holiday in specific countries of the world, the international Forex market never closes.
Internationally, the Forex market can be classified into four geographical regions Asian, American, European, and Pacific. For each region, a city is a financial center, and the time frame for completing the various financial activities is also specified. Most people believe that 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?
Forex market is officially closed in December during Christmas Day (December 25th) and New Year’s Day (January 1st). Forex market is mostly headquartered in London, New York, and the EU, and all these brokers celebrate Christmas Day and New Year.
Forex market on Christmas
The forex market on Christmas and New Year will experience a huge change in liquidity, greatly impacting market opening. Except for low trading volumes and low volatility, the forex market open after the Western holiday season can be highly unpredictable, and even major 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 25th>) and New Year’s Day (January 1st). 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, and hence 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 time period. Since the Forex market is closed for retail traders on Christmas Day, the volatility is greatly 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 is reduced, and volatility is also lowered.
Most of the financial markets in a country are closed when there is 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 has a greater impact on 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 some additional money, some beginners will also trade on holidays. It is observed that these traders will not take the 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. The main 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 main players are absent during bank holidays and public holidays, it has a major impact on 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 due to 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.
On public holidays, the large companies, banks are closed for trading, so the liquidity is greatly reduced. These organizations decide the liquidity of the market with their high trading volume.
Due to the absence of large traders, the Forex market’s liquidity is reduced, which also lowers the volatility. As a result, it 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 reduces 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. 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 28th December 2020. after Christmas in most western countries. Since most traders consider trading on public holidays risky, they avoid Forex trading on these holidays.