Market Trading Hours
Market Trading Hours: On non-holiday business days, the U.S. stock market opens at 9:30 a.m. Eastern Time. Except on market half days, the stock market typically closes at 4:00 p.m.
There are additional options for trading before and after market hours. Institutional investors and increased volatility characterise these hours.
What you should know about stock market trading hours and how they may affect your trades is provided here.
Key Learnings:
- Regular stock market hours are 9:30 a.m. to 4:00 p.m. EST, Monday through Friday.
- Weekend trading is delayed until the following trading day since the stock exchange is closed on weekends.
- Wall Street observes holidays, too! To schedule your deals, take note of the dates.
- Trading during regular business hours carries higher risks because of increased price volatility, decreased liquidity, and other trading irregularities.
An Overview of the Major American Stock Exchanges
What exactly is the stock market, first and foremost?
- The purchasing and selling of stocks on the open market is done by both private parties and public companies, who make up the stock market.
- They transact on the stock exchange, and an index keeps track of their trades. Among the important stock exchanges and indexes in the United States are the New York Stock Exchange (NYSE) and the NASDAQ.
- Though Wall Street in New York City is the beating heart of American investing, it’s crucial to remember that global stock exchanges operate in the same manner.
The stock market opens and closes at what time.
- What is referred to as the “opening bell” signifies the start of trading on the New York Stock Exchange. Every day at 9:30 a.m. EST, it occurs at the opening of the trading session.
- The NYSE uses two bells to announce the start of trading. The first one is a mechanical bell, and the second one is a real bell. When companies trade for the first time and are granted the honor to ring the bell, or when dignitaries are in town and are given the honor as part of a formal ceremony, the physical bell is utilized.
- The opening bell nevertheless provides an answer to the query “what time does the stock market open?” even if there isn’t a bell that rings on the NASDAQ trading floor since it doesn’t actually exist. The start of the trading day is denoted by this phrase.
- What happens when the stock market closes may be another question on your mind. The bell rings once more to signal the conclusion of each trading day at 4 p.m. for both the NYSE and the NASDAQ.
Hours of NASDAQ Stock Exchange
- Additionally, the NASDAQ has normal trading times, which are as follows:
- Standard Trading hours are 9:30 a.m. to 4:00 p.m. EST, Monday through Friday.
- Monday through Friday, 8 a.m. to 9:30 a.m. EST, for pre-market trading.
- Pre-market trading can have both advantageous and unfavorable effects, but there are a number of concerns to be aware of, according to the Securities and Exchange Commission (SEC):
Inadequate Capacity to see Quotations.
- It’s possible that businesses only have one system where quotes can be viewed, and it might not be correct.
- As a result, it’s possible that when trading, you won’t just discover that the prices aren’t what you thought they were, but also that you won’t be able to deal based on those quotes or finish the trade at all.
A Scarcity of Liquids
- Some stocks may trade with less volume during pre-market trading, which makes it harder for you to trade the equities you desire.
- You have much less control over how many shares of the companies you can trade, which will at best result in unpredictable results.
Quote variations that could be wider
- Order execution may be limited and expenses may increase as a result of lower volume, which could result in higher bid and ask prices during regular trading hours.
Pricing Turbulence
- Limited trading capacity may result in price variations that are significantly larger than those that occur during regular trading hours, which doesn’t offer many incentives for purchasers.
Fluctuating Prices
- Prices on the stock market might not correctly represent the expenses of normal trading hours.
Order Limits
- Electronic systems that only accept a certain number of orders could result in orders not being filling, letting you miss the chance.
Computer errors
- Errors that occur after business hours could prevent deals from being making or changed.
Competition
- Larger institutions may have access to more information than do individual investors, providing them an advantage when making investments during these times.
Also Read: Different Bear Markets
