Stock Market Hours: What Time Does the Stock Market Open & Close?

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Stock market hours

What Is After-Hours Trading and Can You Trade at This Time?

While dealing in the stock or trading you are performing up the trading task for that particular period which is termed as the trading session. So, while trading in the stock market Hours the trading session is of day time as well as night time, but most of the activities are held in the day time. Here, we also have an opening bell as well as the closing bell for the trading session which states the beginning of the session or the market is being opened up and the closing of the session or ending of the market for a particular day or session.

But these opening and closing bells are not the only time when trading takes place, here trading also occurs after the closedown of the market. So, the trading that occurs after the closedown of the market or after the closing bell is termed out as after-hours trading session.

What is After-Hours Trading?

Just after the closedown of the major U.S. stock exchange, the After-Hours Trading starts up at 4 PM which is a U.S. Eastern Time. This trading session can run up to late as 8 PM. Here, the trading is done after the closedown of the market and thus referred to as after hours trading. Similarly, trading is carried out before the opening of the market which is known as the pre-market session. And referring to both of these sessions i.e. after hours trading and the pre-market session, they are known to be as extended-hours trading.

After Hours Trading Definition

The time frame of 9:30 a.m. EST and 4 p.m. in the US is considered Normal stock market trading hours. Here, the price at 9:30 AM is opened up and the price at 4 PM is closed down. This is the official trading hours.

So, the trading done after the official hours of the US which is 9:30 a.m. EST and 4 PM is known as after hours trading. The after hour time frame is from 4 PM to 8 PM.

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What time does the stock market open?

The stock market opens at 9:30 a.m. EST, after which the official trading of stocks is carried out. So, the regular trading hours noticed for the US stock market as well as for the Nasdaq Stock Market are 9:30 a.m. to 4 p.m. But this timing does not include stock market holidays. And on weekends, there are no regular trading hours.
Here, the opening hours can be grouped under 3 areas as:

  • Trading Hours in the United States
  • Trading Hours in Asia
  • Trading Hours in Europe

Trading Hours in the United States

  • The time frame of 9:30 a.m. EST and 4 p.m. in the US is considered Normal stock market trading hours.
  • Canada’s Toronto Stock Exchange also has trading hours of 9:30 a.m. EST and 4 p.m.

Trading Hours in Asia

  • Shanghai Stock Exchange also opens up at 9:30 a.m. and closes at 3 p.m.
  • Tokyo Stock Exchange also opens up at 9:30 a.m. and closes at 3 p.m.

Trading Hours in Europe

  • London Stock Exchange opens at 8 a.m. and closes at 4:30 p.m.
  • Euronext Paris opens at 9 a.m. and closes at 5:30 p.m.
  • Swiss Exchange opens at 9:00 a.m., closes at 5:30 p.m.

What time does the stock market close?

The stock market closes at 4 p.m. after which no official trading of stocks is carried out.So, the regular trading hours noticed for the US stock market as well as for the Nasdaq Stock Market are 9:30 a.m. to 4 p.m. But these timings does not include stock market holidays. And on weekends, there is no regular trading hours.

What is the best time to trade in the Stock Market?

The best time to trade in the stock market are noted down as follows:

  • 9:30 to 10:30 AM ET
  • 3 to 4 PM ET 

Both of these offer great opportunities to trade. 

Points to be noted about After-Hours Trading:

  • It starts at 4 PM and comes to an end at 8 PM.
  • The after-hours trading stocks are not liquid.
  • the bid, as well as the ask spread, are wider.

What are the different Stock Market Hours?

There exist 3 types of stock market hours in which trading is being done, which are as follows:

  • Pre stock Market hours
  • After stock Market Hours, and
  • Official or Standard stock market Hours.
  1. Pre Market hours: It is usually the time before the stock market opens time. So, the share market timing is noted as Monday to Friday, where the share market opening time is 7:00 a.m. concluded at 9:30 a.m. ET
  2. After Market Hours: It is usually the time after the stock market close time. So, the share market timing is noted as Monday to Friday, where the share market opening time is 4:00 p.m. concluded at 8:00 p.m. ET
  3. Official or Standard market Hours: It is usually the time in which actual and official trading of stock takes place. So, the share market timing is noted as Monday to Friday, where the share market opening time is 9:30 a.m. concluded at 4:00 p.m. ET

Market Hours Schedule of different stock markets:

Different Stock Exchange have different stock trading hours, which are summarized as:

  • New York Stock Exchange trading hours
  • NASDAQ Stock Exchange
  • Further, there are certain holidays and short days in the US market too. 

1. New York Stock Exchange

  • Standard Trading Time is noted down as Monday to Friday, 9:30 a.m. concluded at 4:00 p.m. ET
  • After-Hours Trading Time is noted down as Monday to Friday, 4:00 p.m. concluded at 8:00 p.m. ET
  • Pre-Market Trading Time is noted down as Monday to Friday, 7:00 a.m. concluded at 9:30 a.m. ET

2.NASDAQ Stock Exchange

  • Standard Trading Time is noted down as Monday to Friday, 9:30 a.m. concluded at 4:00 p.m. ET
  • After-Hours Trading Time is noted down as Monday to Friday, 4:00 p.m. concluded at 8:00 p.m. ET
  • Pre-Market Trading Time is noted down as Monday to Friday, 7:00 a.m. concluded at 9:30 a.m. ET

3. Holidays of U.S. Stock Exchange 

The U.S. stock markets are closed down on the following days as:

  • New Year’s Day
  • Martin Luther King Jr. Day
  • President’s Day
  • Good Friday
  • Memorial Day
  • Independence Day
  • Labor Day
  • Thanksgiving Day
  • Christmas Day

4. The Shortened Trading Days of the U.S. Stock Exchange 

The U.S. stock exchanges have some shortened trading days and these days the market close early on the following days are as follows:

  • The Day preceding to Independence Day which is noted down as 9:30 a.m. concluded at 1:00 p.m. ET
  • Black Friday (the day subsequent to the Thanksgiving) which is noted down as 9:30 a.m. concluded at 1:00 p.m. ET
  • Christmas Eve which is noted down as 9:30 a.m. concluded at 1:00 p.m. ET

After-Hours Trading Terms:

The most common terms used up in After-Hours Trading are as:

  • The Spark: the spark reflects the earning or loosing of an investor. As it is the time frame when an investor buys or sells the stock. 
  • Volume: After the release of the initial news there may be a hike in the volume of the stocks which leads to the progress of the stocks. Whereas, the volume slows down by 6 PM.
  • Price: The price may be sometimes at high while trading in the stocks. Though, the spread is normally not much wider after trading hours. 
  • Participation: The participation of investors and traders sometimes make the stock fall by not participating in the trading hours after the release of the news. Thus, making the stock fall down. So, the participation of the investors and traders also affects the stock other than price and liquidity.

Trading Stocks After Hours Costs:

The cost involved in Trading Stocks After Hours usually involves some extra charges, which can be as $ 0.0005 per share. And in the case of a broker, it may have an assigned brokerage fee or a nominal percentage of share, while trading after stock market close time.

Why you should Trade Stocks After Hours

Trading stocks after hours makes the traders react promptly to the news released. Moreover, companies too release their earning when the stock market is closed down. So, through extended hours trading or stock market after hours trading, the traders can take advantage of this information. 

Other than this, traders also trade in after hours as it provided them the convenience to trade, avoiding the commitments of official hours of trading

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Advantages of After Hours Trading Stocks:

Some of the Advantages associated with After Hours Trading Stocks are as follows:

  • Less competition: Fewer activities are noticed at after hours trade and close down of the stock market. As there is no pressure of office hours and the stocks being traded. The traders can enjoy lesser competition in the market.
  • Fresh Information: A new and fresh information is available to the traders as the after hours trading begins just after the release of the news, which is a point of information for traders and depicts their buying and selling of stocks. 
  • Convenience: Flexibility in trading is enjoyed by the investors in the stock market after hours trading and pre hours trading, giving them much convenience while trading of stocks.
  • Price: Sometimes attractive prices may strike up giving the investor striking opportunities to invest and grow.

Disadvantages of After Hours Trading Stocks:

Some of the disadvantages associated with After Hours Trading Stocks are as follows:

  • index values Calculation: While calculating the index value or stock after trading hours, sometimes leads to miscalculation or difficulty in the calculation of index value for traders. 
  • Lower liquidity: The liquidity in stock after share market closing time is lower as few traders shop after hours. And there is a huge gap noted between the highest value of stock and the lowest value of the stock the whole day before the share market closing time.
  • Uncertain prices: after hours stock market noted down some uncertainty in their prices as they are the prices after the stock market is closed leading to non disclosure of price on the other electronic medium available. 
  • Limited order: While trading in the stock market after closing time of the stock market, or in after trading hours there is a stock limit of 25,000 shares in a single order.

Conclusion: 

After trading hours is a great place to invest in case you really don’t go into the official trading hours, as it offers flexibility, convenience to the traders. Though, the risk associated while trading in after hours stock market could also not be neglected.

FAQ

Yes, you can definitely trade stocks on the weekend, as trading is open on weekend and can be done through Electronic Communication Networks (ECNs), in which investors can also trade in both pre trading hours as well as post trading hours.

National Stock Exchange market is opened on the normal weekdays from Monday to Friday and closed on Saturday and Sunday. And in case of any special session it can be opened up on Saturday and Sunday as well. So, NSE closed today depends upon the list of NSE holidays.

The New York Stock Exchange is opened up on weekdays from Monday to Friday and the timings of stock exchange hours 9:30 a.m. to 4:00 p.m. EST and closed on Saturday and Sunday. Though, in case of major disruption or some official U.S. holidays the New York Stock Exchange or NYSE can be closed down.

In official trading hours the New York Stock Exchange and some other exchanges are helpful in trading of stocks. Though, in case of after trading hours and pre trading hours the electronic communication networks or ECNs are helpful in trading of stocks in the market. Only premarket trading and after hours trading is done through electronic means or through adopting electronic communication networks.

The stock market closes at 4 PM.

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