Many traders believe that you must never trade on public holidays—assuming low volume, choppy price action, or increased risk. While there’s truth to these concerns, it’s not a blanket rule. Trading on public holidays can be wise or risky depending on your strategy, market, and expectations.

Let’s explore when holiday trading makes sense—and when it’s better to step aside.

Why Traders Often Avoid Public Holidays

Public holidays typically bring:

• Lower market participation: Major institutions and banks are closed
• Reduced volume and liquidity: Wider spreads and thinner books
• Unexpected price behaviour: Slow movement or erratic spikes
• Lack of news catalysts: Few scheduled economic events

This creates an environment where technical setups may not play out as expected, and false breakouts are more common.

But Not All Holidays Are the Same

Whether you should trade depends on:

• Which market is open: A US holiday may affect stocks more than currencies
• Your asset class: Forex and crypto often remain active during many holidays
• The type of holiday: Minor bank holidays differ from major global closures like Christmas or New Year’s Day
• Overlap: If London and New York are closed, expect a true liquidity vacuum

Check your calendar—not just your screen.

Certain Strategies Still Work on Holidays

Some trading approaches that may suit holiday conditions include:

• Scalping low-volatility setups with tight risk controls
• Range trading in slow markets that lack momentum
• Watching for key levels from pre-holiday sessions to hold or fail
• Manual backtesting or strategy review when markets are open but inactive

If you have experience and a clear playbook, holiday trading doesn’t have to be avoided completely—it just requires caution.

When to Avoid Trading on Holidays

Skip trading if:

• You rely on volume-based confirmation or news momentum
• You need tight spreads or rapid execution
• You feel emotionally tempted to force trades out of boredom
• You don’t have the time or focus to manage positions carefully

In these cases, preserving mental and financial capital is the smarter trade.

Conclusion: You Don’t Have to Avoid Holidays—But You Do Need a Plan

You don’t need to avoid trading on public holidays by default—but you do need to understand how market conditions shift and adapt your expectations and strategy accordingly. In many cases, the best trade is to do nothing.

To learn how to navigate different market conditions—including low-volume environments—explore our Trading Courses built to help traders master structure, timing, and disciplined execution.