InstaForex

Thursday, December 20, 2012

Inside Trade | Trading on Christmas


As the birth of Christ is fast approaching and people are now too busy shopping for all the things that they needed in preparation for the much awaited event, Some questions might pop up to the fickle minds of newbie traders. If this will be your first Christmas as a trader, you may be wondering if the markets are open during this time of the year.

The answer is yes. But if in case you have plans to trade during the yuletide season, there are some point that you must take note of.

Brokers

Although most brokers allow trading during this time of the year, there may still be some who would stop its operation to enjoy and celebrate Christmas. No one can blame them since it's just normal for humans to stop working once in a while and enjoy life. Spending sometime with their children and relatives or escaping the cold breeze by taking a vacation in a warm island somewhere in the Asian region. If in case your broker's like that, maybe you should too. It won't hurt if you leave trading for a while and just come back tomorrow.

Movement

After successfully entering the market, your instincts may tell you that something isn't right. Something's unusual about the market. Guess what? You're right! During this season wherein most are not working, the economic activity slows down. If there isn't much economic activity, expect that the market movement would be limited.

Spread

Since the movement are limited and only a few are trading, you may get the idea that spread will increase. Why will it increase and how much? Due to the limited number of traders who are working, only a few may agree upon the value that they want to sell or buy the currency of the other party. Often because of this, the spread size becomes triple than the normal, making it really difficult for traders to catch a profit which is aside from the limited market movement.


So in the end, I am advising you to just spend your time with your love ones because even though you have the money that the world can offer, it cannot buy the time you traded with currency trading. Merry Xmas!




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