Forex is the largest financial market in the world, and it operates 24 hours a day, five days a week. However, there are times when forex trading is closed, and this can be due to several reasons such as national holidays, weekends, and special events. In this article, we will explore the reasons why forex is closed today.
National Holidays
One of the main reasons why forex is closed today is due to national holidays. Each country has its own set of holidays, and these can vary from one nation to another. For example, in the United States, forex trading is closed on the following national holidays: New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. These holidays are observed by banks and other financial institutions, which also means that forex trading will be closed.
Weekends
Forex trading is closed on weekends, which means that trading is only open from Monday to Friday. This is because banks and financial institutions are closed during the weekends, and there is no one to facilitate forex trading. However, some brokers offer weekend trading, which allows traders to buy and sell currencies on Saturdays and Sundays. However, this is not as common as weekday trading and may come with additional fees.
Special Events
Forex trading can also be closed due to special events such as political elections, national disasters, and other unforeseen circumstances. For example, during the COVID-19 pandemic, some countries declared a state of emergency, which resulted in the closure of financial markets, including forex trading. In addition, major political events such as elections can also cause forex trading to be closed. This is because these events can cause uncertainty in the markets, and banks and financial institutions may choose to close trading until the situation stabilizes.
Trading Sessions
Forex trading is also divided into different trading sessions, which operate during different times of the day. The main trading sessions are the Asian, European, and American sessions. The Asian session operates from 5 pm to 2 am EST, the European session operates from 3 am to 12 pm EST, and the American session operates from 8 am to 5 pm EST. These trading sessions are open for trading during weekdays, and they overlap with each other, which means that there is continuous trading throughout the day.
Conclusion
Forex trading is closed today for various reasons, including national holidays, weekends, special events, and trading sessions. It is essential for traders to be aware of these closures to avoid trading during these times as it can result in unfavorable trading conditions. It is also important to note that forex trading hours vary depending on the broker and the country, so traders should check their broker’s trading hours to ensure that they are trading during the appropriate times.
