Stock market holidays - 10 things to know with detail
- 1. 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.
- 2. 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.
- 3. 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.
- 4. 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.
- 5. 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.
- 6. 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.
- 7. 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.
- 8. Stock market holidays can also impact the timing of dividend payments, as some companies may adjust their payment schedules to account for market closures.
- 9. 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.
- 10. 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.