Global Holiday! A time for fresh starts, resolutions, and, for traders, the big question: is the forex market open? If you’re wondering whether you can kick off the year by diving into trades, you’re not alone. Many traders are curious about whether they can take advantage of potential market opportunities or if they should sit back and enjoy the holiday festivities instead.

A Global Holiday
First things first—this is a global holiday. Most financial institutions, including banks, close their doors to celebrate the occasion. Since the forex market relies heavily on banks for transactions and liquidity, this means trading activity slows down significantly. Simply put, even if the market appears open, it’s not business as usual.
Forex Market Hours During The Holiday Season
The forex market typically operates 24 hours a day, five days a week, thanks to its global nature. However, during major holidays like New Year, trading hours can be limited or markets may close entirely. Most trading platforms halt activity and reopen after the celebrations, depending on the time zone, leading to reduced market participation and increased trading risks. This downtime gives traders an opportunity to reflect on strategies or prepare for upcoming market movements.
Low Activity Equals Higher Risk
Even if some forex brokers offer access on holiday season, the lack of participation by banks and other traders can make the market less predictable. Low activity means fewer buyers and sellers, which often leads to wider spreads and higher volatility. It’s like trying to shop in an empty store—there’s not much to choose from, and prices can fluctuate wildly.
Should You Trade On Holiday Season?
Honestly? Probably not. The lack of market participants means trading on New Year can feel like walking on thin ice. Instead of jumping into a quiet market, use this time to reflect on your trading strategies, analyze past performance, identify areas for improvement, or set realistic goals for the year ahead. Take a break, recharge, and return when the market is bustling again.
The Bottom Line
No, the forex market isn’t fully operational on holiday season. While you might find some limited activity, it’s not an ideal time to trade due to low participation and increased risks. Enjoy the holiday, plan your next moves, and get ready to trade when the market returns to full swing. After all, a well-rested trader is a better trader!