The forex exchange market is open 24 hours a day, five days a week. However, during the month of December, the market experiences some changes in its schedule due to the holiday season. The forex market follows the global business day, which means that it opens on Monday morning in the Asia-Pacific region and closes on Friday evening in New York. In this article, we will explore when the forex market closes in December and what factors affect its schedule.
The forex market is the largest financial market in the world, with a daily trading volume of over $5 trillion. It is a decentralized market, which means that there is no physical location where traders can buy and sell currencies. Instead, the market operates through a network of banks, brokers, and other financial institutions that facilitate trades between buyers and sellers.
The forex market is divided into three major trading sessions: the Asian session, the European session, and the US session. The Asian session starts in Tokyo at 7 pm EST on Sunday and ends at 4 am EST on Monday. The European session starts in London at 3 am EST and ends at 12 pm EST. The US session starts in New York at 8 am EST and ends at 5 pm EST. These sessions overlap, which means that there is always a market open somewhere in the world.
In December, the forex market experiences some changes in its schedule due to the holiday season. The market is closed on Christmas Day, December 25th, and New Year’s Day, January 1st. However, the market remains open on Christmas Eve, December 24th, and New Year’s Eve, December 31st. These are half days, which means that the market closes earlier than usual.
The exact closing times for the forex market in December depend on the trading session and the country. For example, the Asian session is affected more by the holidays in Japan and Australia, while the European session is affected more by the holidays in the UK and Germany. The US session is affected by the holidays in the US and Canada.
During the holiday season, the forex market experiences lower liquidity and higher volatility. This is because many traders take time off during the holidays, which reduces the number of participants in the market. As a result, the bid-ask spreads widen, and prices can fluctuate more than usual. Traders should be aware of these conditions and adjust their trading strategies accordingly.
In conclusion, the forex market is open 24 hours a day, five days a week, but experiences some changes in its schedule during the month of December due to the holiday season. The market is closed on Christmas Day and New Year’s Day but remains open on Christmas Eve and New Year’s Eve as half days. The exact closing times depend on the trading session and the country. Traders should be aware of the lower liquidity and higher volatility during the holidays and adjust their trading strategies accordingly.
