United States stock markets including the New York Stock Exchange open at 9:30 Eastern Time during the weekday aside from holidays. The stock markets are closed on Saturday and Sunday.
On early closure days, generally right before or immediately after a market holiday, market trading ends at 11:00 AM but trading does occur outside of normal stock market hours.
When a regular session operates on days the market is also pre-moving and while hourly rates vary after-hours trading is performed on electronic communication networks or ECNs and directly pairs buyers and sellers.
Here’s when major exchanges are trading.
Trading outside of regular hours is nothing new but is becoming more accessible for retail businesses with the introduction of a network of digital data services called ECNs. But simply considering that trading extended hours doesn’t mean it’s a good option for you. It comes with risks like poor liquidity, higher prices according to a recent Wall Street survey. . For more information go on CNN iReport.com and the list of markets you should follow.
The three stock trading sessions
There’s really three markets in which shares can be traded: the before-hour, the after-hour markets. The Pre-hours Market acts similar to a normal Market in that the share is traded between the parties to the agreed-upon price. The pricing you get is the cost that people in the premarket are ready to pay.
Stock market trading hours around the world
Many international exchanges have the same hour time locals as that for the US. Individuals should consider the complexities of foreign currency exchange as well as the tax implications of trading internationally. Investing via foreign exchanges is possible by setting up a foreign account through most of the major investment advisers listed in stock markets.
What is extended hours trading?
Extended-hour trading occurs through electronic communication networks and includes both in-situ and post-market trade. Usually investors seek to trade outside the normal hours if news-worthy news stimulates them to buy or sell. Volume of the markets is limited since there are less participants but volume is limited. Most extended hours of trading happens close to regular hours of operation since relevant news is usually published either prior to markets opening or shortly after they close. After office trades can be a reliable indicator of what direction the market will open. It should be noted though that most of these trades generally occur close to normal trading hours.
Pros and Cons of extended hours trading
In many cases the earnings of publicly traded companies are not released until four p.m. EST when a NASDAQ trade is shutted off today. Your order isn’t guaranteed when you’re out of time even though your order is made. The most important trading take place during normal business hours. Volume of prices generally remains higher in after-hour trading. There are a few limits to your trading as specified by your broker. However, one aspect of selling without extended hours has a negative impact on your profitability. Similarly, if you try selling shares at extended hours there might not be as many prospective buyers on these shares so you might not get the price you want.
Why are stock prices volatile after hours?
The number of trading partners after-hours are a fraction of the number during the normal hours of trading. Fewer users mean low trading volumes and less liquidity and consequently bigger bid ask spreads and more volatility.
Stock exchange hours can vary across the globe but after-hours trading is offered to provide convenience. Should we order limit order for something urgent it could sound good too. The limit order allows you to choose the rate you like buying and selling without time being a worry. You just wait until trading during normal business hours.
There exist many different stock markets to choose from so consider different markets to trade at different times of day you want to buy or sell at the same price you choose to buy and sell. If you do not want to trade consider trading at normal time.
The after-hours market is a viable option for investors and traders but the risk is very big. Anyone taking part in after-hour market activities should consider these risks.
Stock Market Opening Hours FAQ
What time does the Stock market open today?
Toronto Stock Exchange and TSX Venture Exchange operate between 8 :45 a.m. and 16 p.m. ET between Monday and Friday except for Stock Market Holidays listed below…. Stock markets & holidays.
What time of day do you buy stocks?
Between 9 – 10:30. The ET period can be used at one or more excellent times throughout the day to make the highest profits the fastest possible. A huge number of day traders stop trading at 11:30 a.m. when volatility and volume tend to decline.
Can you buy stocks when market is closed?
If you want to invest in a specific market you can put an offer in after hours to make transactions on the available rate at the moment the market has opened. … For lesser-known stock markets, you may only enter orders during stock trading hours.