Christmas and New Year greetings start pouring in endlessly right from the second week of December! And these acts only make one ponder on the remaining days left before the holidays begin!

The mere thought of retiring from the mundane tasks and pacing life more towards celebrations, towards irresistible smell of some lip-smacking food and then galloping straight to a vacation, drinking yourself as if there is no tomorrow with your crazy bunch of maniacs are just too oozing that you’d happily SHUT yourself from your routine, right away!

The Tip of the Ice

But is this story the same even for Forex traders? For many, yes. And for the others, may the holy spirit bless them with all the strength ! They’d need it.

It’s time we finally break the tip of the ice and help you answer that simple yet confoundingly complex question- should you or should you not trade Forex during Christmas-New Year holidays?

 

The answer to that is a simple, big and a bold NO ! It is advisable to refrain yourself from the temptation of trading, no matter how “professional” you are at it! You can’t let this “obsession of trading for profits” drag all your smart bulky balances down to doldrums !

The Logic

The logic is simple, really.

We all know that banks are the major participants in a market as highly liquid as that of Forex. And they obviously do not function on Christmas and on the New Year. So, when leading banks shut, there is hardly any market participation. This creates “low to extremely low liquidity” in the market leading to unfavourable market conditions.

But hold on, there is more. With illiquidity hovering, the spread bands could also expand like never before compelling prices to spike. This kind of scenario could either make the markets go static or go crazily erratic.

To put it simply, there is absolutely no point trading in a flat market. And if you thought that automated algorithms could do the trick, then think again. With such unpredictable and uncontrollable circumstances, even EAs don’t give you the desired results.

Happy Holidays!

Now one might wonder, when Forex is known to be a highly liquid market, how then, can it turn sober on holidays?  I’d say, it deserves a little break pal! And so do you, the traders. So unplug yourself from the Forex world, relax and enjoy a break. You would need to be back in your form post holidays for a fresh adrenaline rush of madness.

Happy holidays folks!

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