Stock Market is one of the busiest marketplaces of the financial world. Trading takes place Monday to Friday every week, non-stop. To get access to the stock market an investor needs a broker or a trading app
What Time Does The US Stock Market Open?
| Sr. | Name | Market Capitalization ($ Trillion) | Time Zone | Trading Hours |
| 1 | New York Stock Exchange (NYSE) | $26.23 | EDT / EST | 9:30 a.m. to 4:00 p.m |
| 2 | Nasdaq Stock Market | $19.51 | EDT / EST | 9:30 a.m. to 4:00 p.m |
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The two major US exchanges are the New York Stock Exchange (NYSE) and the Nasdaq. They are both based in New York and are open Monday through Friday from 9:30 a.m. to 4 p.m. EDT or EST depending on whether day light saving is in place or not.
The frequency of trading is usually slow during the middle of the day. Trading frequency is higher around the opening hours and closing hours. The duration of the trading session is total of 6 hours and 30 minutes. The remaining hours of the day are spent by traders researching and analyzing the market information before deciding to make a trade.
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Extended Hours Trading
Trading in the stock market usually goes beyond the above-mentioned trading hours. Trading normally continues after the stock market closes and starts before the trading hours commence. This trading takes place in the pre-market and after-hours trading
As a result, there are three trading sessions within a day:
- Pre-market Trading: The time for this trading session starts as early as 4 a.m. till the market opens at 9:30 am
- Regular Market Trading: Daily trading takes place from 9:30 a.m. to 4 p.m.
- After-hours Trading: This trading session begins at 4 p.m. till 8 p.m. EST
Trading outside the 9:30 am to 4:00 pm time slot is performed via electronic communications networks or ECNs. After-hour trading sets the tone and direction of trading for the routine trading hours. The frequency of trades in the after-hour trading is very low because the number of participants is very low. Not every trader chooses to trade in the extended trading hours. There is always a risk of trading outside regular hours – less liquidity and higher prices.
Trading outside the regular hours has been going on for a very long time but it is becoming easy and more accessible to retail traders quite recently. Due to the availability of electronic communications networks, or ECNs, regular traders can also take benefit from the after-hour trading. Because of ECNs traders can now trade beyond the routine hours. The network connects buyers and sellers directly without an intermediary.
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Risks Of Extended Trading
Extended Trading has its benefits. It allows investors to act instantly and beat the rest of the market. But this reward comes with its set of risks which you as an investor should be aware of:
- Less Liquidity
Extended-hours trading has a lower trading volume. Moreover, some company day trading stocks can only be traded during routine trading hours. This stops the flow of trading and results in lower liquidity
- Higher Volatility:
Since trading volume is low during the extended trading hours, trade takes place at larger spreads. This creates a hurdle for investors to carry out their trades at the desired prices.
- Price Uncertainty:
Higher Volatility makes the market unpredictable. It also makes it difficult for investors to predict the stock price outside the routine trading hours. Furthermore, a stock price usually does not match with its price during normal trading hours. Get to know the best stock signal providers.
2023 Stock Market Holidays
There are no regular trading hours on Saturdays or Sundays. Beyond regular trading hours, stock markets close for only nine federal holidays.
- Friday, January 1: New Year’s Day
- Monday, January 18: Martin Luther King Jr. Day
- Monday, February 15: President’s Day
- Friday, April 2: Good Friday
- Monday, May 31: Memorial Day
- Monday, July 5: (July 4 Independence Day holiday observed)
- Monday, September 6: Labor Day
- Thursday, November 25**: Thanksgiving
- Friday, December 24: Christmas
** Each market will close early at 1:00 p.m (1:15 p.m for eligible options) on Friday, November 26, 2021)
STOCK MARKET HOURS OF THE MAJOR EXCHANGES AROUND THE WORLD
UK Stock Market Hours
| Sr. | Name | Market Capitalization ($ Trillion) | Time Zone | Trading Hours |
| 1 | London Stock Exchange (LSE) | $3.83 | GMT / BST | 8:00 a.m. to 4:30 p.m |
The London Stock Exchange opens at 8 am UK time, and closes at 4:30 pm – with a small break from 12:00 pm to 12:02 pm. The LSE opens for the longest duration- a total of 8 hours and 28 mins. Long trading hours lead to more volatility in the market. Investors get exposed to more information and news because of long trading hours, hence they act upon it which leads to higher volatility.
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Other North American Stock Market Hours
| Sr. | Name | Market Capitalization ($ Trillion) | Time Zone | Trading Hours |
| 1 | Toronto Stock Exchange (TSX) | $2.62 | EST | 9:30 a.m. to 4:00 p.m |
| 2. | Mexican Stock Exchange | CST | 8:30 a.m. to 3 p.m. |
South America Stock Market Hours
The Brazil Stock exchange opens at a different time from the North American exchanges. They are also open for a longer duration – 7 hours and 55 minutes. This means that the Brazil Stock Exchanges undergoes far more volatility than others throughout the day.
| Sr. | Name | Market Capitalization ($ Trillion) | Time Zone | Trading Hours |
| 1 | B3 S.A. (Brazil ) | $1.17 | BRT | 10:00 a.m. to 5:55 p.m |
European Stock Market Hours
The European stock market is open for the longest period of all regions. The Euronext is the largest exchange there. There are no breaks between the trading hours. European Stock Market is open for much longer hours – averaging 8 hours 30 minutes. These exchanges have a higher number of trades and experience higher volatility.
| Sr. | Name | Market Capitalization ($ Trillion) | Time Zone | Trading Hours |
| 1. | Euronext Amsterdam | $5.08 | CEST | 9:00 a.m. to 5:40 p.m. |
| 2. | Frankfurt Stock Exchange | $2.11 | CEST | 9:00 a.m. to 5:30 p.m |
| 3. | Nasdaq Stockholm AB | $1.95 | CEST | 9:00 a.m. to 5:25 p.m. |
| 4. | SIX Swiss Exchange | $1.75 | CEST | 9:00 a.m. to 5:20 p.m. |
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African Stock Market Hours
African economies are offering some of the biggest long-term growth opportunities. African Stock Exchange is amongst the largest stock marketplace.
| Sr. | Name | Market Capitalization ($ Trillion) | Time Zone | Trading Hours |
| 1. | Johannesburg Stock Exchange (JSE) | $1.13 | SAST | 9:00 a.m. to 5:00 p.m |
Asian Stock Market Hours
Asian Region includes some of the most populous countries of the world. There are ample trading opportunities on the Asian Stock Exchanges also. One important fact to note is that majority of the Asian Exchanges close for lunch every day. And the working days for the Saudi Exchange are Sunday to Thursday.
Trading hours are between 4 hours and 6 and a half hours long. Shorter trading sessions experience less activity and less volatility.
| Sr. | Name | Market Capitalization ($ Trillion) | Time Zone | Trading Hours |
| 1. | Tokyo Stock Exchange | $9.21 | JST | 9:00 a.m. to 3:00 p.m (11:30 a.m. to 12:30 p.m. lunch break) |
| 2. | Stock Exchange of Hong Kong (SEHK) | $6.76 | HKT | 9:30 a.m. to 4:00 p.m (12:00 p.m. to 1:00 p.m. lunch break) |
| 3. | Shanghai Stock Exchange (SSE) | $6.56 | CST | 9:30 a.m. to 3:00 p.m (11:30 a.m. to 1:00 pm lunch break) |
| 4. | Shenzhen Stock Exchange (SZSE) | $4.83 | CST | 9:30 a.m. to 3:00 p.m (11:30 a.m. to 1:00 pm lunch break) |
| 5. | National Stock Exchange of India (NSE) | $2.57 | IST | 9:15 a.m. to 3:30 p.m. |
| 6. | Saudi Stock Exchange | $2.43 | AST | 10:00 a.m. to 3:00 p.m |
| 7. | Korea Exchange (KRX) | $2.07 | KST | 9:00 a.m. to 3:30 p.m. |
| 8. | Taiwan Stock Exchange (TWSE) | $1.59 | CST | 9:15 a.m. to 1:30 p.m. |
Australian Stock Market Hours
Australian Stock Exchange is listed amongst the leading exchanges in the financial world. It is a noteworthy market in the Australian Region. It is open for a total of 6 hours a day. The time for this stock exchange is average.
| Sr. | Name | Market Capitalization ($ Trillion) | Time Zone | Trading Hours |
| 1. | Australian Securities Exchange (ASX) | $1.54 | AEDT | 10:00 a.m. to 4:00 p.m. |
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Power Hour Stock Market
The trading session includes a power hour, which is the time just before the market closes. During the power hour, the market sees a lot of volatility and liquidity. A lot of traders choose to trade during this time adjust their positions before the market shuts. This power hour varies according to the opening hours of each stock exchange.
Conclusion
Stock Market opens and closes in every continent according to their time zones and working hours. Stock Exchanges are operating non-stop during the day except for the Asian region where there is an hour-long break for lunch. During the day, stock exchanges are one of the busiest marketplaces and thousands of dollars are exchanged via company stocks on every exchange around the globe.
Disclaimer: None of the information published in this article should be construed as investment advice. Article is based on author’s independent research, we strongly advise our readers to always do their due diligence before investing.
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