When does the forex market open after Christmas?
The market for foreign exchange (Forex) is the largest financial market in the world, 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 on 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, there are other public holidays which affect the Forex market, changing it. These public holidays are Christmas, New Year Eve, and Thanksgiving Day.
If you want to learn more when does the market open 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 2019
Tuesday, 31 December 2019 Open until 8:00 p.m. EET (server time)
Wednesday, 1 January 2020
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 which is 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 27th market. However, this Forex market is mainly open for the central banks of different countries, it is often closed for retail traders.
The Orthodox Church in Greece, 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 in this website Forex and Bank Holidays Calendar in detail.
The market conditions change after the holidays and traders may have to alter their strategy for trading after considering these changes. Since most of the brokers are also taking a holiday on public holidays, hence traders are unable to trade without their broker. Since the Forex market is not located at 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, there is a city that is the 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.
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 that is 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 public holidays in many countries like Australia, China, Europe, the UK and the US, all the financial markets are closed, and this has a greater impact on Forex trading.
Forex trading on public holidays
Usually, only beginners to Forex trading or those who have finalized a strategy for trading 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 of the 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 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 liquidity of the Forex market is reduced, and this also lowers the volatility. As a result, it also difficult for a trader to make much money trading.
Hence, on public holidays, most Forex traders do not trade since the higher spreads, lower liquidity and volatility reduces the possibility of making a reasonable profit. Yet there may be some traders who have developed a trading style which 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 a holiday for the entire period. Usually, the Forex market will open on 27th December after Christmas in most western countries. Since most traders consider trading on public holidays risky, they avoid Forex trading on these holidays.