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Stock market holidays - 10 things to know with detail
Stock market holidays are days when the stock market is closed for trading. These holidays typically include national holidays, religious holidays, and other special occasions.
In the United States, the stock market is closed on the following holidays: New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.
Stock market holidays can vary by country, so it's important to check the holiday schedule for the specific stock market you are trading on.
On stock market holidays, traders are unable to buy or sell stocks, bonds, or other securities. Market orders placed on these days will not be executed until the next trading day.
Some stock exchanges may have shortened trading hours on the day before a holiday, known as an early close. This is to allow traders to close out positions before the market closes for the holiday.
Stock market holidays can have an impact on market volatility, as trading volume tends to be lower on these days. This can lead to wider bid-ask spreads and potentially increased price fluctuations.
In some cases, stock market holidays may be observed on different days than the actual holiday. For example, if Christmas Day falls on a Saturday, the stock market may be closed on the preceding Friday.
Stock market holidays can also impact the timing of dividend payments, as some companies may adjust their payment schedules to account for market closures.
It's important for traders to plan ahead for stock market holidays, as they can disrupt normal trading activities and may require adjustments to trading strategies.
While stock market holidays can be inconvenient for traders, they are an important part of the financial calendar and provide an opportunity for market participants to take a break and recharge before returning to trading.