FOREX market is the world’s largest financial market. Forex market trades of around $5.1 trillion every single day. Brand new traders in the forex market need to have a proper idea of this market. If they enter this market without having proper knowledge of this market, they are not going to make earning from this market on a long-term basis. So, gaining knowledge of the forex market is very important for you if, you want to invest in this market.
So, how you can learn more about the forex market as a brand new trader? As a brand new forex trader, you should test out demo accounts; demo account helps you in learning some basic concepts of the forex market. If basic concepts are clear about the forex market, it will help you when you start out a live forex account.
If you’re an existing trader of the forex market, it is very significant for you to have knowledge of different events when the forex market is closed. Christmas is very popular in Germany, France, Italy, Sweden, Poland, New Zealand, Japan etc. You should be aware of, whether the market is open or closed on this day.
So, are forex markets open on Christmas? No, forex markets are not open on Christmas Day. Forex markets are closed to retail traders, it is always open for central banks. During the public holiday, the volume of transactions being carried out reduces greatly, which results in a very low volatile trading day. Mostly, all the brokers are not available during public holidays.
Trading in the forex market is not at all done at the particular central location or place; it is conducted between participants through phones and ECNs (electronic communication networks) in different markets around the world. Nowadays, due to the availability of internet connections, it becomes easier for a brand new trader to trade in the forex market. Because forex trading via internet is one of the reliable and modern way of trading. Doing this, helps you in saving your time and money.
If you are a forex trader, very consistent and focused on trading and suddenly, you hear about the market close during public holidays. What are some important things you should do to improve your performance?
What should I do when the Forex Market is closed?
The Forex market is generally closed due to public holidays, but when it is closed due to any other reason, you can do numbers of important things to improve your performance in the trading. Here are some of them:
1. Check out your past performance
When you check out your past performance of trading, it gives you an idea of how well you have performed in past days and what improvements you did to improve your performance. You need to evaluate your past performance and also check out what silly mistakes you had done in the forex trading. Your past data help you in improving performance, by not repeating the same mistake you did earlier.
2. Analyze the performance
The next step you need to do after you take a look at your past performance is, analyze your present performance in the market with the past performance. Analyzing the performance gives you an idea of what decisions you took that improved your market performance and what decisions you took that decreased your market performance. Analyzing and evaluating the present performance with the past performance helps you in understanding how well you have performed this year, month or even a week.
These are the two important things you should do while the forex market is closed during public holidays. When you check out your past performance and analyze it with your present results, it shows you the things where you went wrong.
During public holidays, especially on Christmas to New Year’s Eve, the market comes with a big change. Currency is important around the world for international trade by central banks and by global businesses. Because of forex markets are closed during Christmas fest, it also affects the market in some way. There are different thing occurs when the market is closed during the public holiday like Christmas. Below given is the list for changes occur during Christmas because the market is closed:
Changes occur in the closed market during Christmas
1. Thin trading volume
In the forex market, the volume or trading volume is the amount of finance traded during the given period of time. During the Christmas holiday, the amount of finance traded is thin.
During public holidays, when the market is closed, the market suffers from exceptionally low volatility because of thin trading volume. During Christmas, the market is closed and also most of the brokers are not available, such changes make low volatility due to thin trading volume.
2. Brokers unavailability
During a public holiday like Christmas, most of the brokers are not available. Hence, due to this change, the forex market wakes with less volatility and the reason of low volatility is thin trading volume during the public holidays.
Brokers unavailability results in less trading volume. The trader trades with the help of a broker. Hence, brokers’ unavailability results in thin trading volume.
3. Low Volatility
The cause of exceptionally low volatility during the Christmas holidays is mainly because of brokers unavailability. It leads to less forex trading volume and less forex trading results in low volatility. Therefore, less trading volume is the main cause of low volatility in the forex market.
Many traders are obsessed with low volatility because they believe low volatility would be stable for a long time. But the fact is that the cause of low volatility is less trading volume. This problem of low volatility would vanish once the market opens after public holidays.
Thus, the forex market can be divided into three main regions: Europe, Australasia, and North America. Each of these main regions consists of some major financial centers. Each and every day the forex trading starts with the opening of the Australasia area, followed by Europe and then North America.
The forex market is open 24 hours a day from EST 5 pm on Sunday until EST 4 pm on Friday because currencies are on high demand. The forex market never closes, except public holidays like Christmas and New Year’s Eve. There is no exact central location of forex trading; it is conducted through phones or electronic communication network between participants.
Therefore, the forex market is the world’s largest financial market and the forex market is open 24 hours a day. The forex market is not any central location where forex transactions are held, but it is conducted between participants via phone or via ECNs. It is the market consists of risk and return factor. Higher the risk, more the return.
As a forex trader, you must be aware of forex market holidays. For a consistent and focused trader, a market holiday is a break to evaluate or analyze their performance. Also, you can identify some areas where you are lacking, these are areas, if you focus on them you might improve on them.
Hence, the forex market is closed during the Christmas holidays, it is closed for retail traders and these holidays bring many changes to the market. Christmas holiday results into the thin trading volume, unavailability of brokers and low volatility.