Forex trading operates on a decentralised, global network, enabling participants to trade currencies 24 hours a day, five days a week. However, despite this round-the-clock schedule, there are specific leave days—non-trading days—when the forex market is either closed or experiences significantly reduced liquidity. These days are critical for traders to understand as they impact spreads, volatility, and execution quality.

This article explains what forex trading leave days are, when they occur, and how professional traders manage risk and strategy around these periods.

What Are Forex Trading Leave Days?

Forex trading leave days refer to specific days when the foreign exchange market is either completely closed or experiences very low trading activity due to global public holidays. These include:

• Weekends (Saturday and Sunday)
• Major public holidays in key forex trading regions
• Bank holidays affecting liquidity providers and institutional participants

Although the forex market technically never has a single global exchange, these leave days reflect institutional absence and limited price movement, making it unfavourable for active traders.

Weekends: The Standard Forex Leave Days

The forex market officially closes at:

• 5:00 PM EST on Friday in New York
• Reopens at 5:00 PM EST on Sunday

During this 48-hour window, no trading activity occurs. This is considered the global forex weekend break, a key leave period for all retail and institutional traders.

Major Global Public Holidays Impacting Forex Trading

While the market doesn’t shut down for every public holiday, the absence of major banks causes volatility to drop. The following holidays are considered unofficial forex leave days due to extremely low liquidity:

• New Year’s Day (1st January)
• Good Friday and Easter Monday
• Christmas Day (25th December)
• Boxing Day (26th December)
• US Independence Day (4th July)
• Labour Day (First Monday of September in the US)
• Thanksgiving Day (Fourth Thursday of November in the US)

Country-Specific Forex Leave Days

Forex trading is influenced by major trading sessions across the globe:

• New York
• London
• Tokyo
• Sydney

When banks in these financial hubs are closed for national holidays, the forex market becomes thin. For example:

• Golden Week in Japan (Late April – Early May) reduces Asian session liquidity.
• UK Bank Holidays affect the London session.
• Australia Day (26th January) impacts the Sydney session.

These holidays do not close the entire forex market, but significantly reduce activity and increase spreads.

How Do Leave Days Affect Forex Trading?

1. Wider Spreads

During low liquidity periods, spreads widen, especially on exotic or minor currency pairs. Market makers compensate for higher risk due to fewer counterparties.

2. Slippage and Poor Execution

Execution delays and slippage become common. Without major institutions active, price discovery is inefficient.

3. Unexpected Volatility

Ironically, extremely low volume can also trigger random price spikes due to thin order books, especially during Sunday market opens or during news releases on lightly traded days.

4. Difficulty in Technical Analysis

Price patterns formed during low-liquidity sessions are less reliable, affecting trend-following and breakout strategies.

Managing Risk Around Forex Trading Leave Days

Smart traders use the following tactics to handle leave periods:

• Close short-term positions before weekends or major holidays to avoid gaps.
• Adjust position sizes or skip trading entirely on known low-volume days.
• Monitor economic calendars for holidays and central bank closures.
• Avoid news trading when only one region is active (e.g., during partial holidays).

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Key Takeaways

• Forex trading leave days occur during weekends and global holidays.
• These days experience low liquidity, wide spreads, and poor execution.
• Major leave days include New Year’s Day, Christmas, and Good Friday.
• Traders should adjust strategies or avoid trading during such times.
• Awareness of regional holidays in London, New York, Tokyo, and Sydney is essential.

Fundamental vs Technical Analysis

Feature	Fundamental Analysis	Technical Analysis
Basis	Macroeconomic data, interest rates, central bank policy	Price patterns, indicators, chart trends
Leave Day Impact	Can be anticipated via holiday calendars and economic releases	Patterns may become unreliable on low-volume days
Use Case	Long-term positioning	Short-term entries and exits
Effectiveness	High during major macro news	Low during leave days due to low liquidity

Case Study: Christmas Leave Day Impact on GBP/USD

During the 2023 Christmas period, GBP/USD traded in a narrow 35-pip range over two days. Spreads on major UK pairs like GBP/JPY and EUR/GBP nearly doubled, and market volatility collapsed due to the absence of UK and US institutions. Traders who held positions over the break faced difficulty executing trades at desirable prices when the market reopened. This real-world example underscores the risk of trading during forex leave days and reinforces the importance of holiday awareness.

Frequently Asked Questions

What are forex trading leave days?

Forex trading leave days refer to periods when trading activity is paused or significantly reduced due to weekends or global public holidays.

Is forex trading closed on weekends?

Yes, the forex market closes every Friday at 5 PM EST and reopens on Sunday at 5 PM EST.

Which holidays affect forex trading the most?

New Year’s Day, Christmas, Good Friday, and US Thanksgiving are among the most impactful leave days in forex due to reduced institutional participation.

Can you trade forex on public holidays?

Technically yes, but it’s discouraged due to poor liquidity, wider spreads, and limited price movement.

How should traders handle forex leave days?

Traders should consider closing positions before leave periods, avoid overtrading, and adjust strategies for low-liquidity environments.