The foreign exchange (forex) market is the largest financial market in the world, with an average daily trading volume of $5.3 trillion. Forex trading is a 24-hour market, which means that it is open all day, every day except on weekends. However, there are certain days of the year when forex trading is closed. In this article, we will explore what days of the year forex trading is closed and why.
Firstly, forex trading is closed on weekends. This means that the market is closed on Saturdays and Sundays. This is because most banks and financial institutions are closed on weekends, and they are the primary participants in the forex market. Therefore, there is no need for the forex market to be open on weekends.
Apart from weekends, forex trading is also closed on certain national holidays. These holidays vary depending on the country, but some of the most significant ones that affect the forex market include:
1. New Year’s Day: This holiday is celebrated on January 1st every year and is observed in most countries around the world. Forex trading is closed on this day in most countries.
2. Martin Luther King Jr. Day: This holiday is celebrated on the third Monday in January in the United States. Forex trading is closed on this day in the US.
3. Presidents’ Day: This holiday is celebrated on the third Monday in February in the United States. Forex trading is closed on this day in the US.
4. Good Friday: This holiday is observed by Christians around the world and is celebrated on the Friday before Easter Sunday. Forex trading is closed on this day in most countries.
5. Easter Monday: This holiday is observed on the day after Easter Sunday and is a public holiday in many countries. Forex trading is closed on this day in most countries.
6. May Day: This holiday is celebrated on May 1st every year and is a public holiday in many countries. Forex trading is closed on this day in most countries.
7. Memorial Day: This holiday is celebrated on the last Monday in May in the United States. Forex trading is closed on this day in the US.
8. Independence Day: This holiday is celebrated on July 4th every year in the United States. Forex trading is closed on this day in the US.
9. Labor Day: This holiday is celebrated on the first Monday in September in the United States. Forex trading is closed on this day in the US.
10. Thanksgiving Day: This holiday is celebrated on the fourth Thursday in November in the United States. Forex trading is closed on this day in the US.
11. Christmas Day: This holiday is celebrated on December 25th every year and is observed in most countries around the world. Forex trading is closed on this day in most countries.
Apart from these national holidays, forex trading may also be closed on certain regional holidays. For example, in Japan, forex trading is closed on Coming of Age Day, which is celebrated on the second Monday in January.
In conclusion, forex trading is closed on weekends and certain national and regional holidays. These holidays vary depending on the country, but some of the most significant ones include New Year’s Day, Good Friday, Easter Monday, Independence Day, Thanksgiving Day, and Christmas Day. It is important for forex traders to be aware of these holidays as they can affect market liquidity and volatility. It is also important to note that some brokers may have different trading hours or holiday schedules, so traders should always check with their broker for specific details.
