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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. Off-market trades can cause noticeable fluctuations in foreign exchange rates when trading volumes are low due to holidays. 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.
Visit our page to learn more about when the market opens and when trading sessions are held.
Forex trading times on Christmas are different because of nonworking hours – see below.
Forex market opening after Christmas
The forex market will be closed on Wednesday, December 25, 2024. During the New Year holidays in 2024/2025, the forex market will be closed on Wednesday, December 25, and the whole day on Wednesday, January 1, 2025.
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Forex (FX)
Forex trading will remain mostly operational during the holidays with brief interruptions:
- Tuesday, December 24 (Christmas Eve): Early close at 21:58.
- Wednesday, December 25 (Christmas Day): Reopens at 22:05.
- Thursday, December 26: Normal trading resumes.
- Tuesday, December 31 (New Year’s Eve): Early close at 21:58.
- Wednesday, January 1 (New Year’s Day): Reopens at 22:05.
- Thursday, January 2: Normal trading.
When Does the Forex Market Open After Christmas?
The forex market will open after Christmas on 26.12.2024. Wednesday is a Federal Holiday in many countries. Most of the forex market will be closed on 25 December 2024.
Some Forex traders want to know when the 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, often closed to retail traders.
In Greece, Eastern Europe, and Russia, the Orthodox Church 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 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 it is only for retail traders. It is always open to central banks of different countries and associated organizations. Hence, the retail trader will find many changes when the public holiday ends.
Does the forex market close in December?
The forex market officially closes 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.
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?
The holidays that the forex market officially closed are Christmas Day (December 25) and New Year’s Day (January 1). However, the forex market is open on all other workweek days (Monday till Friday).
Closed Forex market changes during a public holiday
Trading conditions in the closed Forex market during public holidays.
- Brokers are not available.
Brokers are closed during public holidays, so the market is also closed for retail traders who rely on brokers. Thus, 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 also decrease.
Most financial markets in a country are closed during a public holiday. Public holidays in many countries, such as Australia, China, Europe, the UK, and the US, result in financial market closures, which significantly impact Forex trading.
Forex trading on public holidays
Usually, only beginners of 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 try 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.
Most 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 lower, making it difficult for traders to analyze the market and trade. The Forex market is impacted since these leading players are absent during bank and public holidays. Hence, traders should be aware that they may be able to make some profit during holidays, yet it is so tiny 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, large companies and banks are closed for trading, reducing liquidity significantly. 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 style that allows them to make money even when there is less liquidity, and most are taking a break.
Conclusion
During public holidays, major players like banks are not involved in trading, significantly altering market conditions. 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 26, 2023. after Christmas in most Western countries. Since most traders consider trading on public holidays risky, they avoid Forex trading on these holidays.
He is an expert in financial niche, long-term trading, and weekly technical levels.
The primary field of Igor's research is the application of machine learning in algorithmic trading.
Education: Computer Engineering and Ph.D. in machine learning.
Igor regularly publishes trading-related videos on the Fxigor Youtube channel.
To contact Igor write on:
igor@forex.in.rs
