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. 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. 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.

There is no exact central location of forex trading; it is conducted through phones or electronic communication network between participants. 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.

Hello I am Tab Winner welcome to my Forex blog. I have been trading Forex and Cryptos for over 5 years now. Been a stay at home dad for about the same amount of time. Are you a newbie who wants to improve trading skills and knowledge about forex trading? Forex is a vast field. You cannot become a successful trader So you want to become successful at forex trading, right? If the answer is yes, you will require the use of various tools and software. That was especially evident during the past two years.

The anomaly of the daily change being bigger than the daily range in is explained by the fact that the daily change value is calculated using the previous candle's Close value, which can be lower than the Low of the current candle due to a gap. At the same time, the daily change is the same. The average daily change on Christmas Eve is about half of that of a regular day. The chart also draws a rather bullish picture for the currency pair. The dominance, albeit less pronounced, remains on Christmas Eve sessions too.

Yet, holiday trading is about twice weaker than all other sessions on average. It also loses in volatility and average daily change to the top four majors.

First, was a clear outlier, which unfortunately spoils the average data for the pair; this is something to bear in mind. Second, the pair's volatility is in a long-term decline with a sort of a revival from onwards, though it has pulled back a bit in the past two years.

Obviously, the year outlier seen on the chart above is to blame here. On top of that, the daily volatility numbers suggest that the currency pair is normally rather volatile and remains such during Christmas trading. There is no noticeable long-term decline in volatility — there is just a peak during the global financial crisis of That year could be called an outlier, but it is not too different from the rest of the Christmas Eve sessions plotted here.

As for the currency pair's movement on Christmas Eve in relation to the nearest trading sessions, it was much more interesting than in all the previous examples. Although the seven major currency pairs we study in this post demonstrate different patterns in their Christmas Eve price action, there are four important conclusions we can come to with the obtained results:.

If you want to share your opinion, observations, conclusions, or to simply ask some questions regarding trading on Christmas Eve, feel free to do so on our Forex forum. If you want to get news of the most recent updates to our guides or anything else related to Forex trading, you can subscribe to our monthly newsletter.

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Hoping for some market cheer during the holidays? In the days between, a number of markets are also closed on certain days so liquidity is expected to be thin around that time. In particular, New Zealand, Australia, Germany, Italy, the United Kingdom, Canada, and the United States have bank holidays on December 26, which is a Monday. Banks in the UK and Canada are still closed for the following day but other markets will reopen then.

December 28 to 30 could still offer a few market moves here and there, as most global banks are open during those days. In addition, there are some medium-tier reports lined up so stocks and currencies could chalk up some quick price action that could offer some last-minute profits for short-term traders before the year comes to a close.

So, in terms of economic releases, there is no shortage of events to be traded, particularly for the latter half of the week leading up to In fact, the New Year is set to start with a bang as China will be printing its official manufacturing and non-manufacturing PMI readings for December then. Since January 1 is a Saturday, though, markets could make huge gaps before trading officially starts the next day.

Apart from that, trading algorithms may pick up on any significant moves and enter additional orders that can push price in a particular direction for a short period of time. While most equity markets take a break over the Christmas holidays, it may be worth parking some money in shares that tend to perform well during the yuletide season.

These typically include retailers that get a strong boost from holiday sales, shipping and transportation companies that benefit from e-commerce and long vacations around that period, and credit or payment services. The Christmas break offers most traders a chance to review their performance for the year and identify things that they could still improve on in preparation for the upcoming trading year. Besides, with the eventful year that was, traders might take a much-needed break when they get the chance, allowing the markets to regroup as well.

This should allow you to look ahead to the next few months and identify potential market catalysts that may be beneficial. With that said, I hope you enjoy a meaningful and prosperous Christmas holiday this year, whether it means catching a few extra pips to add to your account for the year or rewarding yourself with a healthy break. Happy holidays! How To Handle Christmas Week Volatility. Pingback: How To Trade FOREX During Winter - LondonInvestorShowForex. Save my name, email, and website in this browser for the next time I comment.

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SPX Primary Impulse Reaches Intraday Market Analysis — CHF Gains Momentum. Intraday Market Analysis — WTI Hits Resistance. Australia Employment Data, And Election Outlook. Intraday Market Analysis — Gold Attempts To Rebound. Trading During Christmas Posted On 19 Dec By : easyMarkets. Comment: 1.

Tag: Event Risk , Market Holidays. December US CB consumer confidence index, Richmond manufacturing index, Japanese preliminary industrial production and retail sales December Swiss UBS consumption indicator, German import prices, UK BBA mortgage approvals, and US pending home sales December French and Spanish flash CPI, US initial jobless claims, goods trade balance, and wholesale inventories December Australia private sector credit, Chicago PMI January 1: Chinese official manufacturing and non-manufacturing PMI So, in terms of economic releases, there is no shortage of events to be traded, particularly for the latter half of the week leading up to Be more conservative in your profit targets since stocks or currency pairs might move in tighter ranges and traders could also be quick about raking in their gains then.

Stay on the lookout for profit-taking opportunities and quick reversals around psychological levels and inflection points. Price action is more likely to be subdued anyway, so take some time to kick back and relax. Risk warning: Forward Rate Agreements, Options and CFDs OTC Trading are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone.

Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. Won't your trader friends like this? About the Author With over a decade of trading expertise and , fulfilled clients in countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker.

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Investments CopyFX. Stay on the lookout for profit-taking opportunities and quick reversals around psychological levels and inflection points. Add your comment. The peculiar behavior of currency pairs around Christmas time has always captured traders' attention. Advertisements: EXNESS: low spreads - just excellent! Learn more from Adam in his free lessons at FX Academy. Many traders believe that the Forex liquidity on Christmas Eve is very thin, and it is not recommended to trade in such an environment at all.

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