Stock Market Holidays
Stock market holidays are days when stock markets are closed for trade. These days are announced by stock markets and their regulatory bodies. Stock market holidays are a must-know term for investors, traders, and financial planners because there is neither buying nor selling of stocks on these days.
Discussion of this subject will cover what stock market holidays are and why they are important to investors in terms of planning.
Stock Market Holidays
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Stock markets around the
Stock market holidays are non-trading days observed by stock exchanges on account of national festivals, public holidays, or special occasions. On these days:
Equity trading is stopped
Derivatives Trading - Closed
Currency and commodity markets may also be closed (depending on the exchange)
In India, stock exchanges like National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have an official calendar that states holidays for every year.
Why Stock Markets Require Holidays
1. Provides a break from
The stock markets remain closed on holidays because of the following reasons:
National & Cultural Observances
Significant festivals and national occasions are known to correspond with public holidays.
Operational Stability
En
Holidays provide opportunities to these institutions to develop systems and facilitation infrastructures.
Coordenação de Mercado
Various holidays also interact with international markets to keep a balance of settlement.
Types of Stock Market Holidays
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Stock market holidays can be broadly categorized as follows:
1. National holidays
These may include days of national significance like the Independence Day or the Republic Day.
2.
Religious and Cultural Holidays
Festivals such as Diwali, Holi, or Eid may be declared as trading holidays.
3. Special Trading Holidays
Exchanges may occasionally close based on special occasions/shows of limited trading activities, including Muhurat Trading.
Are All Financial Markets Closed During Stock Market Holidays?
Not always. While equity markets will remain closed, other markets could function in a different manner:
Commodity markets: Might have evening trading hours open
Global markets: Foreign stock exchanges might stay open
Unit trusts/mutual funds: Trades may be accepted but completed on the next working day
One should always refer to the exchange calendar before engaging in any trade.
Impact of Stock Market Holidays on Investors
Stock Market Holidays may impact investment decisions in the following ways:
No Intrday & Delivery Trades on Holidays
Execution of the orders is suspended until the next trading day.
**Settlement timelines may change**
Volatility may rise prior to or following extended vacation periods
Investment plans based on these holidays can prevent delays and lost opportunities.
How to Verify the Official Holiday Lists for Stock Markets
Investors should refer to reliable sources such as:
Companies’ websites
Generally Accepted Accounting Practices (GAAP
Official websites of stock exchanges (NSE, BSE)
Registered brokerage platforms
Financial news sites (*) Financial news
Do not make use of unofficial sources of information, as schedules may change around holidays
Guidance for Investors During Holiday Weekends
If you are an
Plan Your Trades in Advance Don't place orders at the last minute when approaching holidays View global market trends Examine longer investment techniques rather than day trading techniques
