The foreign exchange market, also known as forex or FX, is the largest and most liquid financial market in the world, with an estimated daily turnover of around $5.3 trillion. It is open 24 hours a day, five days a week, and traders can access it from anywhere in the world. However, during the festive season, the market experiences some changes in terms of trading hours and liquidity due to the closure of banks and financial institutions. In this article, we will discuss when the forex market closes for Christmas.
Christmas is a time for celebration and relaxation, and it is also a time when financial markets take a break. The forex market is no exception. The market usually closes for Christmas on December 24th at 5:00 pm EST (10:00 pm GMT), and it remains closed for Christmas Day on December 25th. Trading then resumes on December 26th at 5:00 pm EST (10:00 pm GMT).
It is worth noting that the forex market is a global market, and different countries and regions have different public holidays. Therefore, the market may close earlier or later than the times mentioned above, depending on the country or region. For instance, the forex market in Japan usually closes on December 31st and January 1st for New Year’s Eve and New Year’s Day. Similarly, the market in Australia and New Zealand closes on December 25th and 26th for Christmas and Boxing Day.
During the holiday season, the forex market experiences lower liquidity due to the closure of banks and financial institutions. This means that there are fewer traders and investors in the market, which can lead to wider spreads and increased volatility. As a result, traders should exercise caution when trading during the holiday season and adjust their trading strategies accordingly.
It is also worth noting that some brokers may have different trading hours during the holiday season, depending on their policies and procedures. Therefore, traders should check with their brokers to confirm their trading hours and any changes that may occur during the festive period.
In conclusion, the forex market closes for Christmas on December 24th at 5:00 pm EST (10:00 pm GMT) and remains closed on December 25th. Trading resumes on December 26th at 5:00 pm EST (10:00 pm GMT). However, traders should keep in mind that different countries and regions may have different public holidays, which may affect trading hours and liquidity. Therefore, it is essential to stay informed and adjust trading strategies accordingly to avoid any potential risks.
