The Easter holiday period, encompassing Good Friday and Easter Monday, is one of the most significant annual disruptions to the forex market. In 2026, Good Friday falls on April 3, with Easter Monday on April 6. During these days, major financial centres in the US, UK, Europe, Australia, and many other countries close their doors, leading to severely reduced liquidity, wider spreads, and increased volatility. This guide explains what these holidays mean for forex traders, how the market operates during these periods, and the critical risk management steps you should take.
Good Friday is a Christian holiday commemorating the crucifixion of Jesus Christ. It is a public holiday in many countries, including the United States, the United Kingdom, Germany, France, Australia, Canada, and most of Europe. Easter Monday is also a public holiday in many of these countries, though it is not observed in the United States.
For forex traders, these days are not official market closures per se—the forex market remains technically open 24 hours a day, five days a week—but the absence of key market participants (banks, hedge funds, and institutional traders) leads to a collapse in liquidity. Most brokers reduce their trading hours or offer limited services. In practice, Good Friday is treated as a de facto holiday for most currency pairs.
The National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) do not mandate specific closures, but they note that holiday periods present heightened risks due to reduced market depth. According to the Bank for International Settlements (BIS), trading volumes on Good Friday can drop by 50–70% compared to an average trading day.
With major banks and financial institutions closed, the number of market participants is drastically reduced. This leads to:
While the forex market never fully closes on weekdays, many brokers and liquidity providers shut down early on Good Friday. For example:
On Easter Monday, the UK, Europe, and Australia are closed, but the US market reopens. Still, liquidity is below normal as many European traders remain away.
The most significant risk during the Easter holiday is the potential for price gaps when the market reopens after the long weekend. If any major news or geopolitical events occur during the closure, the price can jump sharply at the open, bypassing stop-loss orders and causing unexpected losses.
Even though the Easter holidays present challenges, there are some practical ways traders can approach this period.
The most common strategy among professional traders is to stay out of the market on Good Friday and Easter Monday. The risk-reward ratio is unfavourable, and the reduced liquidity makes it difficult to execute trades effectively.
Some experienced traders may attempt to trade the thin liquidity for quick scalps, but they do so with reduced position sizes, wider stops, and a strict limit on the number of trades. This is only suitable for those with a high level of skill and risk tolerance.
Traders who expect a gap can place limit orders (buy stops or sell stops) just above or below key levels to try to capture a gap move. However, this is speculative and carries high risk.
Traders with open positions before the holiday may use options or other instruments to hedge against gap risk. This is an advanced strategy that requires a good understanding of derivatives.
Before deciding to trade during the Easter holidays, evaluate these criteria to determine whether it is appropriate for you.
Check current spreads and depth of market. If spreads are excessively wide, the cost of trading may outweigh any potential profit.
Verify your broker's official holiday schedule. Some brokers may close entirely, while others may offer limited trading.
Are there any major economic releases scheduled during the holiday period? Typically, most data releases are postponed, but some may still occur.
Given the wider spreads and slippage, is the potential reward worth the elevated risk? For most traders, the answer is no.
Are you prepared for the stress of trading in a thin market? Avoid emotional decisions and stick to your plan.
Do you have a clear plan for dealing with gaps and slippage? Consider reducing position sizes and widening stop-losses.
This table highlights the key differences between typical trading conditions and the Easter holiday period.
| Feature | Normal Trading | Easter Holidays (Good Friday & Easter Monday) |
|---|---|---|
| Market Hours | 24/5 (Sun 5 PM ET to Fri 5 PM ET) | Reduced hours; many brokers close early or limit trading |
| Liquidity | High; deep order books | Very low; shallow order books |
| Typical Spread (EUR/USD) | 0.5–1.5 pips | 5–20+ pips (wider) |
| Slippage | Minimal | Frequent; orders may be filled far from requested price |
| Volatility | Moderate; driven by economic data | High; driven by thin liquidity and gap risk |
| Economic Data Releases | Regular schedule | Minimal; many data releases postponed |
| Gap Risk | Low | High; significant gaps possible over the long weekend |
| Risk Level | Managed by typical risk controls | Elevated; higher chance of unexpected moves |
Note: Specific spreads and hours vary by broker. Always check your broker's official holiday schedule.
Use this checklist to prepare for the Easter holidays and protect your trading account.
Scenario: James is a day trader who typically trades EUR/USD. As Good Friday approaches (April 3, 2026), he has a short position open that is currently in profit. He is unsure whether to close it or hold through the holiday.
Step 1: James checks his broker's schedule. He learns that trading will close early on April 3 at 1:00 PM ET and will remain closed on April 6 (Easter Monday) for UK and European clients, though the US market may reopen with reduced liquidity.
Step 2: He reviews the economic calendar. There are no major releases scheduled for the weekend, but he is concerned about potential geopolitical news that could cause a gap.
Step 3: James calculates the risk. His current profit is $300. If a gap occurs against him, he could lose $500 or more. He decides that the potential reward is not worth the gap risk.
Step 4: He closes his position before the holiday closure, securing his $300 profit. He then stays out of the market for the holiday period.
Outcome: On Monday, the market reopens with a gap up of 50 pips against his former position. James is relieved that he closed his trade, as he would have taken a loss. By being cautious, he preserved his capital and avoided unnecessary risk.
The CFTC and NFA have issued investor alerts about the dangers of trading during low-liquidity periods such as holidays. According to FINRA, retail investors should be extra cautious when trading in thin markets due to the potential for sharp, unpredictable price movements and execution issues.
Key risks of trading during the Easter holidays:
The Bank for International Settlements (BIS) notes that global forex turnover drops significantly during major holidays, and this reduction can lead to price distortions. Retail traders should carefully consider whether the potential rewards justify the risks.
This guide is for educational purposes only and does not provide personalized financial, legal, or tax advice. Always verify current rules, fees, spreads, rates, broker availability, and platform terms with the relevant authority or provider. Consult with a qualified financial advisor before making any investment decisions.
Technically, the forex market remains open, but liquidity is extremely low because major banks and financial institutions in the US, UK, and Europe are closed. Most brokers offer limited trading, and spreads are significantly wider. In practice, it is treated as a de facto holiday.
Good Friday 2026 is April 3. Most brokers close trading early, often around 12:00 PM – 1:00 PM Eastern Time (ET). The exact time varies by broker, so you should check your broker's official holiday schedule.
Easter Monday (April 6, 2026) is a public holiday in the UK, Europe, Australia, and many other countries. While the US market is open, liquidity is still reduced because many international participants are absent. Many brokers offer limited services on Easter Monday.
Yes, spreads can widen dramatically during the Easter period due to low liquidity. For example, EUR/USD spreads that are normally 0.5–1 pip can expand to 5–15 pips or more on Good Friday and Easter Monday.
It is generally recommended to close or significantly reduce your positions before Good Friday to avoid gap risk and the uncertainties of thin liquidity. If you choose to hold positions, ensure you have a clear risk management plan and consider widening your stop-loss orders.
Swap rates may be adjusted by brokers to account for the bank holidays. Some brokers apply the rollover on the day before the holiday or use a different calculation. Always check your broker's swap policy for holiday periods.
Stop-loss orders are generally still functional, but due to wider spreads and slippage, they may be executed at a price significantly different from your specified level. In extreme cases, if a gap occurs, your stop-loss may be triggered at the first available price, which could be far from your intended stop.
Pairs involving the Japanese yen (USD/JPY, EUR/JPY) may see some activity as Asian markets are open during the Easter period (since Easter is not a major holiday in Japan). However, overall liquidity is still much lower than usual, and spreads are wider.