You asked, Is It Worth to Trade On Forex During Holidays?
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.
You may ask how?
Certain patterns repeat and whilst the biggest economy in the world eats plenty of turkey, the rest of the globe carries on as normal.
Think what that actually means.
How much USD currency transactions will there be, how does a currency pair appreciate or depreciate?
Look at EUR/USD, we are getting as much as 1% movement in one day, work that out with 500/1 leverage, wow!
I will give you a clue, last US holiday, the majors made significant gains vs USD.
30th May Memorial Day 2022
That saw a sharp rise on the EUR/USD on the holiday and a sharp recovery the next day, an actual pip movement of 260 pips in two days.
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 centre. 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 realise 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 realise that the liquidity is low, the analysis is difficult, and the risks are high.
Currencies trade 24 hours a day in the forex market, meaning that you can often place an FX trade at any time.
This is achieved as trading transitions from one major market in a certain time zone to another as the day progresses (e.g., from London to New York to Sydney to Tokyo).
Retail traders often are limited to trading Monday through Friday, however.
Because markets can move at any hour, many forex day traders prefer not to hold positions overnight.