The forex market is the largest most liquid market in the world with average traded values that can be trillions of dollars per day. There is no central marketplace for currency exchange; trading is conducted over the counter. The forex market is open 24 hours a day, five days a week and currencies are traded world wide among the major financial centers of London, New York, Tokyo, Frankfurt Hong Kong, Singapore, Paris and Sydney.

As Christmas and the New Year are approaching, most traders usually start thinking about taking vacations, what kind of presents to give their family and friends, or looking forward to holiday parties. However, if you still want to trade the markets on holidays, understanding the inherent risks and dangers of after-hours trading may limit your risk exposure. There are a lot of reasons to avoid trading on holidays.

For beginning forex traders in particular, holiday trading is very tempting. It can be difficult to pull yourself away from the excitement on the market and take a break from the action. As the widely observed holidays approach, you as a trader may wonder whether it would be a good idea to trade in the foreign exchange market on these special days.