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Trading forex during the Christmas holidays is a poor idea. Instead of staring at the chart, a trader should spend that time with their children in the garden. However, if a trader desires to trade in a turbulent market, he must make certain assumptions. 

During the Christmas season, forex trading becomes extremely difficult for traders. During such days, many traders take a long break from forex trading. Traders should halt trading at least a week before Christmas since making money becomes extremely tough at that time. 

As a result, traders should start trading far into the New Year once they have returned to their chart and life has returned to normal. 

According to tradition, Christmas Day commemorates the birth of Jesus on December 25, 1 BC.

 As a result, most countries observe this as a public holiday. Furthermore, the entire week around December 25th is recognized as a holiday in lieu. 

Most professional traders take a vacation during this period because they are afraid to trade against low liquidity and excessive volatility. Banks will be absent from the market, and there will be a dearth of market-moving news. 

During that moment, the majority of traders would close their positions. As a result of the wide spreads, brokers will benefit handsomely. Despite the fact that businesses would generate less profit owing to trade inactivity, they must pay their employees. 

Volatility is high. 

Traders may easily make money during an urge since the market follows the levels better than at other times. The absence of market movers, on the other hand, will keep the trend volatile. As a result, there is a possibility of false break and stop loss hunts.

The proof of extreme volatility may drive the price nowhere after consuming your profits by producing false breaks. At that point, the top forex players will be out of the game. This means that no one can generate any interest in certain currency combinations. As a result, the market will be diverse. As a result, there is no way to generate a reasonable profit. 

The Broker’s Trap 

True, forex brokers hike their spreads over the holidays. The fundamental cause for this is a lack of liquidity. As a result, tiny traders are exposed to the hazards of bid and ask proposals. It is up to the broker to decide when to increase the spread. It’s difficult to pinpoint a precise time. 

As a result, if you wish to make a trade at such a moment, you should verify the spread beforehand. 

Finding a well-regulated broker reduces the risk marginally.

 A well-regulated broker’s goal is to profit from the spread rather than to widen it. 

The market is unpredictable. 

The forex market is a decentralized market in which no one can predict where the price will go in the future. All traders and investors profit from the forex market by correctly forecasting market possibilities. If the probability are correct, the trader will benefit. On the other side, if the probability is incorrect, the trader loses. 

However, Forex trading during the Christmas holidays is dangerous since the market is difficult to forecast because there is no solid trend. There is a chance that a bearish trade setup from a strong barrier may fail. Furthermore, due to poor liquidity, the entire day may swing within 15 pips or rapidly jump in a minute. Ordinary traders find it difficult to respond to that market scenario.

Prepare for the New Year by recharging your batteries. 

Working overtime may be harmful to your health as well as your intellect. Furthermore, if your A+ trade ideas are hitting stop losses, the market conditions may place further pressure on you. In that scenario, you should spend the time by taking a big breath of fresh air before beginning your lengthy run. Because forex is a psychological game, this break is a fantastic chance for traders. Getting some instruction in emotion regulation and stress management may help you improve your trading psychology. 

However, rather than studying the EURUSD chart on December 25, the ideal practice during the holiday season is to play with your children in the yard or visit your closest relatives.