The foreign exchange market, commonly known as forex, is a global decentralized market where currencies are traded 24 hours a day, five days a week. Due to its global nature, the forex market remains open throughout the year, including weekends and public holidays. However, there are certain days when the market closes or operates on a limited schedule. In this article, we will explore when the forex exchange market closes for the year.
The forex market operates on a 24-hour basis from Monday to Friday. The market opens at 5 PM EST on Sunday and closes at 5 PM EST on Friday. However, during the Christmas and New Year holidays, the forex market operates on a limited schedule.
The forex market is closed on December 25th, Christmas Day, and January 1st, New Year’s Day. These two days are global public holidays, and most financial markets, including the forex market, are closed. The closure of the forex market on these two days means that traders will not be able to trade forex pairs during this period.
Apart from Christmas Day and New Year’s Day, the forex market operates on a limited schedule during the holiday season. The forex market usually operates on a reduced schedule from December 24th to January 2nd, as many traders take time off during this period. During this time, liquidity in the market tends to be lower than usual, which can lead to increased volatility.
On December 24th, also known as Christmas Eve, the forex market closes early, usually at 1 PM EST. This early closure is due to the fact that many traders take time off from work to celebrate the holiday with their families. The early closure of the forex market on Christmas Eve means that traders have a shorter window to trade forex pairs.
On December 31st, also known as New Year’s Eve, the forex market operates on a reduced schedule. The market usually closes earlier than usual, around 5 PM EST. This early closure is due to the fact that many traders take time off from work to celebrate the New Year with their families.
It is important to note that the forex market operates differently in different countries. Therefore, traders need to be aware of the holiday schedule of the country where the forex broker they are using is located. This is because the holiday schedule can vary from country to country, and traders need to know when the market is open and closed in order to make informed trading decisions.
In conclusion, the forex exchange market operates 24 hours a day, five days a week. However, during the Christmas and New Year holidays, the forex market operates on a limited schedule. The market closes on December 25th and January 1st, and operates on a reduced schedule from December 24th to January 2nd. Traders need to be aware of the holiday schedule of the country where their forex broker is located, as the schedule can vary from country to country. By knowing when the forex market is open and closed, traders can make informed trading decisions and avoid any potential losses.
