A. Andy asks:
This coming Monday, May 02, the banks of Switzerland, France, Italy, and England will be closed in observance of Labor Day, and the banks of Japan will be closed in observance of Constitution Day.
What is your forecast of Forex market activity on Monday, and what are the risks of trading on bank holidays?
The major risk is illiquidity. You can be sitting with a position that is solidly in the money and some corporate or hedge fund comes into the market with an order that normally would have minimal impact on prices, but in illiquid markets can have exaggerated effects.
The flip side is that illiquid markets tend to be more volatile, which can translate into profits if managed successful.
