The stock markets that most Americans use – the New York Stock Exchange (NYSE) and the NASDAQ – are both open Monday to Friday from 9:30 a.m. to 4 p.m. Eastern Standard Times. Other stock exchanges in different parts of the world – the London Stock Exchange in the U.K or the Tokyo Stock Exchange in Japan, for instance – operate based on local time zones and local customs. Below, you’ll find details on the hours of operations for stock exchanges all around the world. If you want help buying and selling stocks and building your portfolio, consider working with a financial advisor.
Stock Market Hours in the U.S. & Canada
The NYSE andthe NASDAQare 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.
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 8 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 5:20 p.m. CET. It’s not open on 12 holidays a year, including New Year’s Day, Good Friday, Easter Monday, Ascension Day, Whit Monday, Christmas Eve, Christmas, Boxing Day and New Year’s Eve.
The London Stock Exchange Group, headquartered in London, is open from 8:00 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, Emperor’s Birthday, Vernal Equinox, Showa Day, Constitution Memorial Day, Greenery Day, Children’s Day, Marine Day, Mountain Day, Respect for the Aged Day, Autumnal Equinox, Sports 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, Qingming Festival, Labor Day, Dragon Boat Festival, two days for the Mid-Autumn Festival and four 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 17 holidays per year, including New Year’s Day, three days for the Lunar New Year, Qingming Festival, Good Friday, Easter Monday, Labor Day, Dragon Boat Festival, Special Administration Region Establishment Day, three National Days, two days for Christmas and New Years Day.
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 14 holidays per year, including Republic Day, Mahashrivati, Holi, Dr. Baba Saheb Ambedkar Jayanti, Good Friday,Ram Navami,Id-Ul-Fitr, Bakri Id, Independence Day, Ganesh Chaturthi, Muharram, Mahatma Gandhi Jayanti, Dussehra, Diwali, Gurunanak Jayanti and Christmas.
How Extended-Hours Trading Works
Investors can trade stocks during the hours before and after the stock market closes. Known asafter-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 closes. 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.
A few brokerage accounts that offer after-hours trading include Merrill Edge, Fidelity and Charles Schwab.
The 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 circ*mstances, 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. In this case, you might not be able to get the price you want.
Bottom Line
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. You can also 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 a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- The stock market isn’t the only place you can invest your money. Consider learning aboutdifferent types of investments and how they work before deciding where to build your portfolio.
Photo credit: ©iStock.com/SARINYAPINNGAM, ©iStock.com/Easyturn, ©iStock.com/da-kuk
