A trader or investor should keep in mind the number of forex trading days available each year when planning their investments, given that forex trading typically occurs 24 hours per day and five days a week – though exact figures depend on country and financial market. Knowing exactly when trading days occur will allow traders to plan investment strategies, anticipate market fluctuations, and mitigate any associated risks during periods with reduced liquidity.
A year’s trading days are determined by subtracting weekends and public holidays from a standard 365-day calendar. In the United States, nine recognized holidays close the stock market each year while numerous holidays such as Christmas Day, New Year’s Day, Martin Luther King Jr Day President’s Day Good Friday Thanksgiving Day are observed by forex market traders during 2018.
Additionally, trading days vary based on trading instrument and country; for example in the US there are approximately 252 trading days annually excluding weekends when markets are closed for these two days. Trading days also vary month to month: for instance February and May have limited trading days while March and August tend to be the busiest months for forex traders.
As such, selecting the optimal times to trade forex can be difficult. But generally speaking, market activity tends to peak on Tuesdays, Wednesdays, and Thursdays; traders should look towards this timeframe in particular for optimal trading opportunities.
Due to summer holidays and other factors, market volatility tends to decrease during this period. Therefore, it’s essential that when trading during this time period you ensure you have sufficient capital available in order to cover all positions taken on. Additionally, it is wise to practice small-interval trades during this time to reduce risk and maximize your profits. Overall, it is crucial that traders remain mindful of how many forex trading days there are in a year as this can significantly alter your trading activities’ profitability. This article presents a helpful overview on how to calculate the number of trading days in a year. By following this straightforward method, it allows you to easily establish ideal trading times for your forex strategy as well as gain greater insight into how the forex market functions.
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