How Many Forex Trading Days in a Year?
A trader or investor across multiple asset classes–stocks, futures, forex and cryptocurrencies–should consider the number of trading days annually as an important factor when devising their trading and investment strategies. By understanding how trading hours differ by asset class and adapting their strategies accordingly, market participants can maximize opportunities while mitigating risks.
Below we’ll explore the answer to the question, “how many forex trading days are there each year on average.” Additionally, we will share insights and patterns related to this subject matter that could help traders improve their trading strategy and increase profitability.
Forex (foreign exchange) refers to the practice of buying and selling currencies on an international currency market. The forex market operates 24 hours per day, five days per week, closing only on weekends or national market holidays designated in certain countries; as a result, its total number of trading days in a year varies significantly year to year.
Apart from local and national holidays affecting trading days in a year, forex trading can take place on various days depending on which pair is chosen – some pairs experience greater liquidity or volatility during European or North American sessions than others do.
Consideration should also be given to the number of trading days each quarter, which can significantly alter market volume and volatility. For instance, major U.S. stock markets (NYSE and Nasdaq) operate for 21 trading days per month and 63 per quarter.
The number of trading days per year on the forex market varies depending on several factors, including time zone and local and national holidays. Being an international market, trading hours don’t exist as there can take place anytime of day or night if market participants have access to an internet and suitable trading platforms.
Forex traders also experience changes to their calendar due to leap years, which typically occur every four years and add one additional trading day to the calendar. Calculating the number of trading days during a year begins with counting weeks in a calendar and subtracting national holidays and weekends from that total. Add any relevant factors that could alter the number of trading days each year, such as shorter trading hours during events and holidays, which market participants can track using trading platforms or official sources. Economic calendars offer traders another way to stay abreast of market-related events and trading hours, providing more clarity for aggressive traders who cannot stand non-trading days; however, according to Simpler Trading founder John Carter, taking time off can actually benefit your health as it leads to better trading ideas when markets reopen.