How Many Trading Days Are There in a Year?
Uncover the true number of trading days in a year across diverse financial markets and understand its critical importance for investors and market analysis.
In financial markets, a “trading day” refers to the period when an exchange is officially open for business, allowing for the buying and selling of securities. This distinguishes market operations from weekends or holidays, when trading does not occur. Understanding the number of trading days in a year is important for investors and financial professionals, as it impacts various calculations and strategic decisions.
Standard Trading Days on Major Stock Exchanges
Major U.S. stock exchanges, such as the New York Stock Exchange (NYSE) and Nasdaq, operate for approximately 252 trading days annually. Markets are generally open from 9:30 AM to 4:00 PM Eastern Time. For instance, in 2025, the NYSE is scheduled to have 251 trading days. This number is derived by subtracting weekends and observed market holidays from the total calendar days.
The calculation begins with 365 calendar days. From this, 104 weekend days (Saturdays and Sundays) are excluded. The remaining weekdays are then reduced by approximately 9 to 11 official market holidays observed by exchanges each year.
Factors Affecting Trading Days
The number of trading days is less than total calendar days due to weekends and official market holidays. Weekends, Saturdays and Sundays, account for 104 non-trading days annually, as major financial markets are closed.
U.S. stock exchanges observe several federal holidays, remaining closed throughout the year. These include New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. If a holiday falls on a weekend, it is observed on the preceding Friday or following Monday. Exchanges may also implement early closings, usually at 1:00 PM Eastern Time, on days like the day before Independence Day, the day after Thanksgiving, and Christmas Eve. These days are still counted as full trading days despite reduced hours.
Trading Days in Other Financial Markets
Other financial markets operate on different schedules than stock exchanges. U.S. bond markets generally follow a similar holiday schedule but observe additional holidays like Columbus Day and Veterans Day. Bond markets also frequently have more early closings, often concluding trading at 2:00 PM Eastern Time on several dates.
Cryptocurrency markets operate 24 hours a day, seven days a week, every day of the year. This continuous operation means there are no official holidays or weekend closures, though trading volume and liquidity may decrease during traditional holiday periods. The foreign exchange (forex) market also operates globally around the clock, typically five days a week, from Sunday evening Eastern Time through Friday evening Eastern Time. Although largely decentralized, the forex market does not observe all local holidays, but major international holidays like Christmas Day and New Year’s Day can significantly reduce liquidity.
Why Trading Days Matter
The number of trading days holds significance for investors, traders, and financial professionals. It is used in calculating annualized returns for investments. Financial models often use 252 trading days as a standard for annualizing daily or weekly returns, rather than 365 calendar days, to provide a more accurate representation of investment performance based on actual market activity. This adjustment is important because investment gains are realized only when markets are open.
The trading calendar also impacts trading strategies and risk management. Short-term traders rely on this knowledge to plan activities, as market closures affect liquidity and volatility. During periods with fewer trading days, such as around holidays, market liquidity can decrease. This can lead to wider bid-ask spreads and more pronounced price movements, making it challenging to execute large orders without impacting the asset’s price. The number of trading days influences financial planning, portfolio management, and the overall assessment of market behavior.