Is The Forex Market Open On Thanksgiving Day? (What To Expect)

As traders, we all are aware that the forex market experiences some changes on holidays.

This Thanksgiving day is a form of holiday and it begs the question “Is the Forex Market Open On Thanksgiving day?”

It’s important to remember that the forex market is open 24 hours a day, from Monday to Friday.

During this time, people can trade and exchange different currencies.

So with that being said…

Key Takeaways

• Forex market is typically open 24/5 but may be affected on Thanksgiving Day.
• Market activity on Thanksgiving depends on your location, the currency pairs affected by the holiday, and liquidity provided.
• Traders should expect potential changes in trading conditions during holidays and should try and adjust strategies accordingly.

What Is Thanksgiving Day and How Does It Affect The Forex Market?

Thanksgiving Day is a national holiday that is celebrated in the United States on the 4th of November according to Britannica.

And as with every other holiday, traders and investors would leverage this opportunity to spend quality time with their friends and family.

This, in turn, affects the forex market in the sense that there would be reduced liquidity flowing in the market.

Now, to the main question…

Is The Forex Market Open On Thanksgiving Day?

The opening of the forex market on Thanksgiving day depends on the following factors;

• Time Zone of the location of the trader
• Currency pair being traded
• The market’s level of liquidity

Now, let’s explain each one of them.

Time Zone Of The Location Of The Trader:

First of all, you need to be aware that the forex market runs in different time zones. 

These different time zones lead to the division of the active trading hours in a 24-hour period.

These divisions are known as Trading Sessions.

Trading sessions are the most active hours of trading where there is high market volatility.

Forex trading sessions and their time period in different time zones are as follows.

Trading Sessions	GMT	UTC	EST
Sydney	Open:7 AM Close:4 PM	Open:4 PM Close:1 AM	Open:9 PM Close:6 AM
Tokyo	Open:9 AM Close:6 PM	Open:7 PM Close:4 AM	Open:12 AM Close:9 AM
London	Open:8 AM Close:5 PM	Open:2 AM Close:11 AM	Open:7 AM Close:4 PM
New York	Open:8 AM Close:5 PM	Open:8 AM Close:5 PM	Open:9 PM Close:10 PM

As you can see from the table above, each session is with its own unique opening and closing time.

So, how do these different time zones affect a trader?

Let’s take some examples.

Suppose you have a trader who is located in the United States where this holiday is observed at the national level, you can be sure that the market would either remain closed throughout their trading session (time zone) or at best close at 1 pm EST.

This is because the major market drivers like the big institutions and the banks would close up their trading activities and go spend quality time with their friends and family.

This would then make the liquidity available in the market drastically reduced.

On the other hand, if a trader’s location is in Asia where this Thanksgiving isn’t a national holiday, then you can be sure that the market may remain open and unaffected since they trade during different time zones.

Are you following? I hope so.

Currency Pair Being Traded:

The currency pair traded can affect traders in the sense that they may experience low volatility especially if the base currency observes this holiday.

And what traded currency pairs do you think would be most affected because of this holiday?

Yeah, you guessed right….

It is the USD-related pairs.

Especially when USD is the base currency of the traded pair.

So pairs like the US dollar and the Japanese yen i.e. USDJPY would be greatly affected.

The Market’s Level Of Liquidity

Finally, it’s important to mention that the forex market operates in a decentralized manner.

There’s no central exchange or clearinghouse that governs its trading hours.

Instead, it’s run by a network of banks, financial institutions, and individual traders who connect through electronic trading platforms. 

This setup leads to variations in trading hours based on the market’s liquidity and availability.

Can you also see how the Thanksgiving holiday also affects traders and investors?

Good!

Final Words

In conclusion, as traders, you need to understand the impact of holidays on the forex market, including Thanksgiving Day. 

While the forex market generally operates 24 hours a day from Monday to Friday, holidays can bring about changes in trading conditions.

And the question of whether the market opens on Thanksgiving or not, largely depends on the time zone of the location of the trader, the currency pair that is being traded, and the market’s liquidity.

Understanding these dynamics of the market helps you make informed decisions during Thanksgiving Day and other holidays. 

It allows you to anticipate potential changes in market conditions, adjust trading strategies accordingly, and manage risks effectively.

Remember to stay informed, adapt to market fluctuations, and enjoy the holiday season while also keeping an eye on the forex market. 

Good luck With Trading.

Frequently Asked Questions ( FAQ’s)

Should I trade Forex during Thanksgiving?

As a newbie, I advise that you steer clear of the market as the market movement can become largely unpredictable.

Is Forex open on holidays?

General holidays like the weekends (Saturday and Sunday) for the Forex market are usually not open for trading.

But for other holidays like Thanksgiving, you can refer to the factors discussed in this article.

Which month is not good for trading forex?

Generally, June, July, and August are months that are not good for trading forex. This time,  volatility slows down which is due to the summer season, making it the worst time to trade forex.

Which days are not good for trading forex?

Sunday nights are the days that are not good for trading forex. This is owing to gaps that the market produces because of the inactivity of traders during this period.