Good Friday 2025, observed on April 18, will significantly impact Forex trading in the UK as it is a major public holiday during which financial markets, including the London Stock Exchange, are closed.
While the Forex market operates 24/5, liquidity is typically reduced due to the absence of major institutional participants, leading to wide spreads and increased volatility. Our experts recommend that traders exercise caution due to decreased liquidity, adjust their position sizes, utilize limit orders, and prioritize stable currency pairs like the USD, EUR, and JPY.
Quick insights
Impact of Good Friday 2025 on UK Forex market hours
- Forex trading on Good Friday in the UK, April 18, 2025, will experience significant changes in trading hours due to the closure of major financial institutions and Stock exchanges.
- While the global Forex market operates 24 hours a day, five days a week, the absence of key liquidity providers in the UK will impact trading activity.
- The London trading session is one of the most important Forex sessions globally, will be effectively inactive, reducing overall market participation.
- To avoid any unexpected disruptions, it is best to check with individual Forex brokers for specific trading hours and conditions.
- Understanding these changes will help traders plan effectively, ensuring they avoid unnecessary risks during the holiday period.
Market closures and limited liquidity: What traders should expect
Major financial centers, including the London Stock Exchange and the New York Stock Exchange, closed on Good Friday, the Forex market will experience significantly less liquidity, although the market technically remains open.
According to my research, low trading volume can lead to unpredictable price fluctuations and wide spreads, making trading a very risky endeavor. A limited number of participants can cause erratic price behavior, so I recommend that traders be cautious.
Avoid trading during illiquid times
- Brokers will continue to operate their platforms for Forex trading in the UK, but it will be on a limited schedule.
- Since major markets in the United States, Europe, and Australia will be closed, the UK Forex market hours Good Friday 2025 will lead to slower trade execution and wider spreads.
Increased volatility
- Good Friday 2025 UK Forex trading, traders don’t make trade on Good Friday. This is because there’s high volatility around in the market, and prices can change suddenly.
- If traders want to trade, focusing on currencies involving the JPY, as those markets might be more active.
Learn how to measure and check volatility in Forex market to maximize your trading opportunities.
Slippage and difficulty in execution
- Forex Trading on UK Public Holidays such as Good Friday, Easter Monday, and US Independence Day disrupts Forex trading by reducing market participation.
- So, traders should be aware of these holidays to avoid unfavorable trading conditions and potential losses.
Trading hours and price movements
- Although Forex trading continues, price movements can be erratic due to low participation.
- Traders keep an eye on market holiday as spreads often widen, making trading more expensive.
Market hours and Easter Monday
- Following Good Friday, market activity may be slow on Easter Monday, April 21, 2025.
- While some markets may resume operations, it may take some time for liquidity to return to normal. So, be prepared for the volatility that may occur after the holiday.
Discover the Forex market hours and gain insights on when to trade for maximum profit.
Strategies for UK Forex traders during Good Friday 2025
Here are some strategies for UK Forex traders to consider during the Good Friday 2025 public holiday, keeping in mind the reduced liquidity:
- Since major market closures often lead to low liquidity and unfavorable trading conditions, it is wise to avoid trading during these times.
- UK Forex traders can effectively plan their trading during market holidays by using economic calendars, which help them avoid volatility and adapt their strategies.
- When markets closed for holidays, traders should tighten their risk management strategies to protect against higher volatility and lower liquidity.
- It is advised to exercise caution when trading before and after holidays, as markets may exhibit unpredictable behavior during these periods.
- Anticipate market movements based on historical data before major holidays, as markets may show predictable patterns, which provide unique trading opportunities.
- For the best liquidity during the UK holidays, focus on JPY-based pairs such as USD/JPY, as the Tokyo market is active.
- Following Good Friday, stay informed about the Forex market open schedule for other major markets, as this will have implications for liquidity and price action.
- Understanding the psychological key aspects of trading and employing effective strategies is vital for success in unpredictable markets.
Alternative markets and instruments to consider on Good Friday
If Forex liquidity is too low for comfortable trading, consider alternative markets.
Cryptocurrency trading
Cryptocurrencies like Bitcoin, Ethereum, and others can be traded on Good Friday. Crypto markets remain open 24/7 and often see increased activity during traditional market holidays.
Commodities
Commodity markets provide trading opportunities for gold, oil, and silver, but low liquidity can lead to wide spreads and increased trading costs.
International Stock Indices
While UK and US Stock markets close, Asian and some European indices may remain active.
Conclusion
Good Friday 2025 will bring significant changes to UK Forex trading due to market closures, limited liquidity, and potential price fluctuations. By staying informed, adjusting strategies, and considering alternative trading options, traders can navigate the holiday period with confidence. Optimize your Forex trading strategies with proven approaches for managing liquidity.
Mindful risk management, monitoring of market developments, and exploring alternative assets such as Cryptocurrencies and Commodities can help traders maintain a balanced approach. To avoid losses, traders must be prepared and adaptable during this period. If not, their accounts lose money due to increased volatility and poor market conditions.
Pro Tip
Monitor latest market news closely around Good Friday, as unexpected events in global markets can still impact Forex movements, Our trusted Forex broker provide updates on CFDs, Stocks, and Crypto to assist your trading decisions, and also our broker finder tool helps you find your right brokers. Subscribe now and share your feedback in the comments!