Forex trading on holidays: to trade or not to trade? This is a question that each trader has a personal answer to. Beginners do not want to miss an opportunity of earning extra money in holiday forex trading; moreover, this issue is important in terms of avoidance of swap commissions, which are accrued when the transactions are deferred due to holidays and weekends. At times this amount can be very significant, so traders should be clear about advantages of forex trading during holidays.
Forex is a Job Just Like Any Other
A trader is the same kind of a worker as those who work in offices, banks and manufacturing companies; he has weekends and holidays on the same days as others do. Traders have days off, when there are holidays in their country or across the globe. Forex trading is being done not just by certain countries, but globally. Speaking about the stock exchange, holidays and weekends of a given country matter; when it comes to forex, it means global scope, and forex trading on holidays has its peculiarities.
The international market practically never stops…
Forex operates twenty-four hours a day and can be divided into the following sessions: Pacific, European, Asian, and American. For each city there is its own timeframe of performing functions of a financial center. Thus, in different countries traders have different activity peaks in forex trading. The international market practically never stops; its work can be paused during weekends and holidays celebrated around the world, but here it is necessary to consider the difference in time.
Traders who still want to take a chance and trade on such days have to realize that the liquidity is low, the analysis is difficult, and the risks are high.
There are countries that choose not to trade on certain days, which of course has its impact on such an indicator as volatility. During holidays, especially if we are talking about the holidays celebrated in America and Europe, at the forex market the rates of the large majority of the currency pairs are not changing for one simple reason: nothing is moving them. Therefore intraday trading in such a period is not recommended. Traders who still want to take a chance and trade on such days have to realize that the liquidity is low, the analysis is difficult, and the risks are high.
Of course, you’ll be able to make a profit, but so insignificant that it’s not worth it.
To Work or Not?
There might be various situations that a trader unable to foresee. Sometimes leaps of the prices are too swift and fast, and they happen so immediately, that, once you trade the opposite direction, you just won’t be able to do anything about it. However, this is rather an exception than a rule, because at holiday times forex market is usually sluggish and inert. This you will also learn from forex forecasts. Of course, you’ll be able to make a profit, but so insignificant that it’s not worth it.
Traders Need Rest Too
Better use this time to good purpose: spend it with your family and friends, relax and celebrate. You can get information about market holidays from your broker, and, once you haven’t chosed a suitable forex company yet, you can refer to the reviews on forex brokers. Your company or dealing center have to provide you with all the relevant information, including forex market news containing essential data such as holiday time.