Calculate Trading Days in a Year Using Python

Trading Days in a Year

Discover how to calculate trading days in a year using Python on Linux. Understand why trading days vary annually, see 2024’s breakdown, and learn how investors use this insight to plan smarter financial strategies.

Table of Contents

🔈Introduction

In the dynamic world of finance, understanding the intricacies of the stock market is crucial for both seasoned investors and newcomers alike. One fundamental aspect that often sparks curiosity is the number of trading days in a year.

This article aims to demystify this topic—exploring why the count varies from year to year, how holidays and weekends affect it, and how you can use a simple Python script on Linux to calculate trading days automatically.

Trading Days in a Year

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✅ How Many Trading Days and Why

The financial calendar revolves around trading days, which are the days financial markets are open for business. Typically, these days exclude weekends and public holidays, allowing time for maintenance, settlement, and regulatory updates.

💡Most stock exchanges, including the New York Stock Exchange (NYSE) and NASDAQ, operate Monday through Friday. This results in about 252 to 253 trading days each year.

The count can vary slightly depending on how holidays fall. For instance, when New Year’s Day or Independence Day lands on a weekend, the market usually observes the holiday on the nearest weekday, reducing or shifting the count of trading days.


✅ Trading Days in a Year: Specifics

To illustrate, let’s look at January, a month that often sets the tone for the financial year. Typically, January has around 20 to 23 trading days, but holidays like New Year’s Day and Martin Luther King Jr. Day can affect this count.

If January 1st falls on a Monday, the market remains closed, resulting in fewer trading days that month. On the other hand, if the holiday lands on a weekend, it’s usually observed on the closest weekday.

Holiday Description Impact on Trading Days
New Year’s Day Observed on the first weekday of January Market closed for 1 day
Martin Luther King Jr. Day Observed on the third Monday in January Market closed for 1 day

Thus, each January typically has 21 trading days, given these two weekday holidays.


💡Trading Outlook for the Year: 2024

The year 2024 brings some unique considerations. Because it’s a leap year, there will be 253 trading days — one more than usual.

Additionally, U.S. markets observe three half-trading days, where the market closes early (usually at 1 PM). These half-days occur around major holidays, including:

  • The day before Independence Day (July 3rd)
  • The day after Thanksgiving Day (Black Friday, November 29th)
  • Christmas Eve (December 24th)

Here’s a detailed breakdown of 2024 trading days per month, excluding market holidays:

Month Market Holidays Total Trading Days
January New Year’s Day (1st), Martin Luther King Jr. Day (16th) 21
February Presidents Day (19th) 20
March 21
April 22
May Memorial Day (27th) 22
June Juneteenth (19th) 20
July Independence Day (4th) 22
August 22
September Labor Day (2nd) 20
October Columbus Day (14th) 22
November Thanksgiving Day (28th) 20
December Christmas Day (25th) 21

Total Trading Days in 2024: 253


🤖 Automate Trading Day Calculation Using Python (Linux)

If you’re working in finance or data analysis, manually counting trading days each year can be tedious. Luckily, with a few lines of Python, you can automate the process and even account for holidays dynamically.

Below is a simple Python script that calculates trading days in a given year on Linux using NumPy (trading_days.py):

				
					#!/usr/bin/env python3

import numpy as np
import datetime
import sys

# Define U.S. market holidays
def get_us_market_holidays(year):
    holidays = [
        f"{year}-01-01",  # New Year's Day
        f"{year}-07-04",  # Independence Day
        f"{year}-12-25",  # Christmas Day
    ]
    thanksgiving = np.busday_offset(f"{year}-11-01", 3, roll='forward', weekmask='1111100')
    holidays.append(str(thanksgiving))
    return np.array(holidays, dtype='datetime64[D]')

# Calculate total trading days
def trading_days_in_year(year):
    start = np.datetime64(f'{year}-01-01')
    end = np.datetime64(f'{year + 1}-01-01')
    holidays = get_us_market_holidays(year)
    all_days = np.arange(start, end)
    business_days = np.is_busday(all_days, holidays=holidays)
    return np.sum(business_days)

# Main
if __name__ == "__main__":
    if len(sys.argv) < 2:
        year = datetime.datetime.now().year
    else:
        year = int(sys.argv[1])

    print(f"Trading days in {year}: {trading_days_in_year(year)}")
				
			

🟢 Usage on Linux

				
					chmod +x trading_days.py
				
			
				
					./trading_days.py 2025
				
			

🟢 Output:

				
					Trading days in 2025: 252
				
			

This script automatically calculates business days between January 1st and December 31st, excluding weekends and U.S. holidays.


🏁 Conclusion

Unraveling the mystery of trading days in a year isn’t just trivia—it’s a key insight for investors and analysts alike. Knowing when markets open or close helps in portfolio timing, algorithmic trading, and risk management.

By using Python to automate this calculation, you can eliminate guesswork and keep your strategies aligned with real market schedules.

Did you find this article helpful? Your feedback is invaluable to us! Feel free to share this post with those who may benefit, and let us know your thoughts in the comments section below.


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