How Many Forex Trading Days Are in a Year?

how many forex trading days in a year

Forex trading has grown increasingly popular over time as individuals seek to take advantage of the potential profits this market offers. Unfortunately, many novice traders lack an understanding of the number of trading days in a year and its factors that influence this number. Here we will cover exactly that! In this article, we will look at this topic along with its importance as well as when best to trade and more.

The forex market operates around-the-clock and five days per week, although it should be noted that certain holidays will cause closures of this market and could have an enormous effect on trading activity and liquidity levels. Therefore, forex traders must keep tabs on holidays to adjust their strategies appropriately.

As well as its standard US holidays, the forex market also observes bank holidays in various countries and regions around the world, which can affect trade volumes and currency prices. Furthermore, unexpected national-scale events can close the forex market altogether; consequently reducing trading days each year.

Forex traders trade currency pairs representing the value of one country’s currency relative to another. Speculators purchase such pairs when they expect the former’s currency value will increase relative to its counterpart and sell when they anticipate that value decreasing; any difference in price between buying and selling prices, known as spread, acts as transaction costs for traders. Most prefer trading at times with high volumes as this can help maximize profits and help maximize profits.

Though the forex market is open 24 hours a day, not every hour of activity on it is equal. The most bustling sessions occur during European and North American sessions starting in London and New York respectively – they provide high levels of volatility and liquidity during this period.

The Asian session tends to be less active and have lower volumes due to most Asian economies being in the middle of their business cycle, thus investors being less likely to make big moves during this session. Still, traders should recognize its significance; yearly there are approximately 252 forex trading days when taking into account both weekends and average weekdays; this number may change based on holidays or other factors.


Tags: