There are several stock market exchanges around the world, but the New York Stock Exchange (NYSE) and the NASDAQ are the largest in North America. The NYSE and NASDAQ are open Monday to Friday from 9:30 a.m. to 4 p.m. Eastern Standard Time (EST). Other international stock exchanges in Asia and Europe operate on their own set hours. If you have questions about how to invest in stocks, speak with a financial advisor near you today.
Stock Market Hours in the U.S. & Canada
The NYSE and the NASDAQ are the two main American exchanges, both of which are headquartered in New York City. They are each open Monday through Friday from 9:30 a.m. to 4 p.m. EST.
Both markets close for nine federal holidays per year, including New Year’s Day, Martin Luther King Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas. Additionally, for 2020, these markets also have shortened hours on two days: the day after Thanksgiving and on Christmas Eve.
The Toronto Stock Exchange, or TMX Group, headquartered in Toronto, is also open from 9:30 a.m. to 4 p.m. EST. It closes for 10 holidays per year, including New Year’s Day, Family Day, Good Friday, Victoria Day, Canada Day, Civic Holiday, Labour Day, Thanksgiving, Christmas and Boxing Day. It has modified hours on Christmas Eve.
Stock Market Hours in Europe
Euronext, headquartered in Amsterdam, is open from 9 a.m. to 5:40 p.m. Central European Time (CET). It is closed for six holidays per year, including New Year’s Day, Good Friday, Easter Monday, Labour Day, Christmas and Boxing Day. The Euronext exchange also has modified hours on Christmas Eve and New Year’s Eve.
The SIX Swiss Exchange, headquartered in Zurich, is open from 8:30 a.m. to 5:30 p.m. CET. It’s not open on 12 holidays a year, including New Year’s Day, the day after New Year’s Day, Good Friday, Easter Monday, Labor Day, Ascension Day, Whit Monday, Swiss National Day, Christmas Eve, Christmas, Boxing Day and New Year’s Eve.
The London Stock Exchange Group, headquartered in London, is open from 8:15 a.m. to 4:30 p.m. Greenwich Mean Time (GMT) or British Summer Time (BST). It closes for eight holidays per year, including New Year’s Day, Good Friday, Easter Monday, an early May bank holiday, a spring bank holiday, a summer bank holiday, Christmas and Boxing Day. The exchange also has modified hours on Christmas Eve and New Year’s Eve.
Stock Market Hours in Asia
While the NYSE, NASDAQ and TMX Group exchanges do not close for lunch, many markets in Asia do. These include the Tokyo Stock Exchange in Tokyo, which is open from 9 a.m. to 11:30 a.m. and 12:30 p.m. to 3 p.m. Japan Standard Time (JST). The Tokyo Stock Exchange is closed for 22 holidays per year, including New Year’s Day, market holidays on January 2 and 3, Coming of Age Day, National Foundation Day, Vernal Equinox, Showa Day, Abdication Day, Accession Day, National Holiday, Constitution Memorial Day, Greenery Day, Children’s Day, Marine Day, Mountain Day, Respect for the Aged Day, Autumnal Equinox, Health and Sports Day, Enthronement Ceremony Day, Culture Day, Labor Thanksgiving Day and a market holiday on December 31.
Both the Shanghai Stock Exchange, headquartered in Shanghai, and Shenzhen Stock Exchange, headquartered in Shenzhen, China, are open from from 9:30 to 11:30 a.m. and 1 p.m. to 3 p.m. China Standard Time (CST). Both close down for 15 holidays per year, including New Year’s Day, five days for the Spring Festival in February, Ching Ming Festival, Labour Day, Tuen Ng Festival, Mid-Autumn Festival and five days for National Days in October.
The Hong Kong Stock Exchange, headquartered in Hong Kong, is open from 9:30 a.m. to 12 p.m. and 1 p.m. to 4 p.m. Hong Kong Time (HKT). It also closes for 15 holidays per year, including New Year’s Day, three days for the Lunar New Year, Ching Ming Festival, Good Friday, Easter Monday, Labour Day, The Birthday of Buddha, Tuen Ng Festival, Special Administration Region Establishment Day, National Day, Chung Yeung Festival, Christmas and the first weekday after Christmas.
The Bombay Stock Exchange, headquartered in Mumbai, is open from 9:15 a.m. to 3:30 p.m. Indian Standard Time (IST). It closes for 15 holidays per year, including Mahashrivati, Holi, Dr. Baba Saheb Ambedkar Jayanti, Good Friday, Maharashtra Day, Bakri Id, Independence Day, Ganesh Chaturthi, Muharram, Mahatma Gandhi Jayanti, Dussehra, Diwali, Gurunanak Jayanti and Christmas.
What Is Extended-Hours Trading?
Investors can trade stocks during the hours before and after the stock market closes. Known as after-hours trading, this allows you to buy or sell stocks after the market closes. On the other hand, pre-market trading happens in the hours before the market opens Together, after-hours and pre-market trading make up extended-hours trading.
While investors can trade stocks during weekday mornings and evenings, trading on weekends is not possible. The only exception is if it’s on an international exchange that’s already open in that time zone. For example, the NYSE offers after-hours trading from 7 a.m. to 9:30 a.m. and from 4 p.m. to 8 p.m. The NASDAQ offers pre-market trading from 4 a.m. to 9:30 a.m. and after-hours trading from 4 p.m. to 8 p.m.
Depending on the exchange, there may be different rules for after-hours trading than for normal trading hours. In addition, each brokerage firm may have different rules for trading when the market is closed. Most brokerages require customers to agree to the Electronic Communication Network, or ECN, user agreement before engaging in after-hours trading. Sometimes customers are required to discuss it with a representative so that they can understand the potential risks associated with after-hours trading, such as less liquidity and more volatility. ECN electronically matches buyers and sellers to execute limit orders. Sometimes, after-hours orders happen through a dealer at a price that’s better than the ECN’s best offer. At the end of extended-hours, any incomplete orders are canceled.
Pros and Cons of Extended-Hours Trading
For starters, you can trade at any time with after-hours trading. In other words, you can trade when it’s most convenient for you or in response to timely news events.
Many public companies release their quarterly earnings after 4 p.m. EST, when the NYSE has closed. Therefore, investors can immediately place a trade after companies release their earning. Under normal circumstances, investors would have to wait until the market opens again. The U.S. employment report releases at 8:30 a.m. EST the first Friday of every month. Rather than waiting until 9:30 a.m., an investor could adjust their position immediately after the report comes out.
There is no guarantee your order will go through during outside hours, even if you make the order. The vast majority of trading happens during normal business hours. That means if you are selling stock, there is more demand during normal business hours. If you are buying stock, there is more supply during normal business hours. In addition, price volatility tends to be higher during after-hours trading, and there may be trading limitations imposed by your broker. For example, if you’re a new or inexperienced investor, your brokerage account may not allow for buying specific investments that are exceptionally volatile.
However, one of the main potential disadvantages is that buying and selling outside of normal business hours could negatively impact your profitability. For example, if you are trying to sell shares of stock during extended hours, there might not be as many buyers interested in those shares – so you might not be able to get the price you want during extended hours.
Stock market hours may vary worldwide, but after-hours trading offers you ample convenience. It can be especially useful if you need to make trades right away and minimize the risk.
It might be smart to consider a limit order if you need to place an order immediately, but don’t care what time of the day the trade goes through. A limit order will allow you to choose the price you’re comfortable buying or selling at, without time being a concern. It could be filled any time the price you selected is available.
There are many different stock markets to choose from. So if you decide that after-hours trading is not for you, consider a stock market with different hours or simply wait to trade during normal business hours.
Tips for Buying and Selling Stocks
- If you’re new to buying and selling stocks, you may want to consider working with a financial advisor. Finding the right financial advisor for you doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors in your area in five minutes. Get started now.
- The stock market isn’t the only place you can invest your money. Consider learning about different types of investments and how they work before deciding where to build your portfolio.
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