OANDA Brokerage announced that it has adjusted its trading schedule for October 11 due to the upcoming Chung Yeung Festival, which is considered a public holiday in Hong Kong and a national holiday in China. The Chung Yeung Festival in Hong Kong will affect trading hours for certain securities, and the closure will be due to reduced market liquidity and market holidays in various regions.

Trading of the HK50, Hong Kong's equity price index, will be closed on October 11. Trading in other related indices and stocks will also be suspended.

In its statement, OANDA emphasized that the partial closure of trading on October 11 for some CFDs on stock indices is aimed at mitigating risks associated with expected liquidity shortages and the possibility of significant market fluctuations. The closure will also affect non-Asian securities tied to Hong Kong's trading infrastructure.

While the FX market and some other global indices remain open, traders should exercise caution as the market closure in Hong Kong could increase volatility, especially during the New York session leading up to the next trading day. OANDA forecasts a possible divergence in market rates at the reopening as trading volumes recover from the holiday, which could lead to notable divergence in rates from previous closing levels.

The Chung Yong Festival, which is widely celebrated in East Asia, is known for its impact on regional financial markets, and companies such as OANDA adjust their trades in advance. OANDA advises traders to be particularly alert to potential price gaps and changes in rate movements on October 11 and the morning of October 12. Because market rates could change significantly, traders should be prepared for sharp movements that could affect their positions in both forex and stock indices.

OANDA's decision underscores a broader industry trend of proactive adjustments during major holidays in Asia, as firms seek to ensure smooth trading during periods of reduced liquidity.