Why Many Traders Choose to Step Aside on Christmas Eve

Given the risks of low liquidity and unpredictable movement, many traders choose to reduce exposure or stay out of the market entirely on Christmas Eve. This approach is often described as “sitting on hands” a disciplined decision to protect capital rather than chase uncertain opportunities.
Closing positions before the holiday helps traders avoid overnight gaps, sudden spikes, or price jumps that occur when markets reopen. It also allows them to return after the holiday with a clear mind and a stable trading environment.
In Forex trading, knowing when not to trade is just as important as knowing when to trade. Holiday sessions are a reminder that patience is a strategy. Preserving capital during difficult conditions often leads to better performance over the long term.
As markets slow down for the holidays, stepping back can be the smartest move. Christmas Eve is less about finding trades and more about managing risk and preparing for the next active session ahead.