It can be tough to keep up with the stock market day-to-day. Between work, life and everything in between, it’s hard to find time to stay on top of your portfolio.
Stock trading hours
The U.S. stock market is open for trading Monday through Friday from 9:30 a.m. to 4:00 p.m. EST, with the exception of holidays declared by the New York Stock Exchange (NYSE) in advance. The bond market is also open during these same hours.
There are four main stock exchanges in the United States: the New York Stock Exchange (NYSE), Nasdaq, the American Stock Exchange (AMEX), and the Over-the-Counter Bulletin Board (OTCBB). The hours of operation for each exchange are as follows:
- NYSE: 9:30 a.m. to 4:00 p.m. EST
- Nasdaq: 4:00 a.m. to 8:00 p.m. EST (Pre-Market and After Hours trading begins at 4:00 a.m. and 8:00 p.m., respectively)
- AMEX: 9:30 a.m. to 4:00 p.m. EST
- OTCBB: 8:00 a.m. to 5:30 p.m. EST
The stock market is in the Eastern Time Zone.
What are pre-market and after-hours trading?
Pre-market trading hours are from 4:00 a.m. to 9:30 a.m. EST, and after-hours trading hours are from 4:00 p.m. to 8:00 p.m. EST.
During pre-market hours, investors can place orders for stocks to be traded when the market opens at 9:30 a.m. EST. After-hours trading takes place after the stock market has closed for the day.
Investors can place orders for stocks to be traded during after-hours trading hours, but they will not be executed until the market opens the next day.
What is extended-hours trading?
Extended-hours trading is stock trading that takes place outside of regular trading hours. Extended-hours trading refers to both pre-market and after-hours trading.
Pre-market trading hours are from 4:00 a.m. to 9:30 a.m. EST, and after-hours trading hours are from 4:00 p.m. to 8:00 p.m. EST.
During extended-hours trading, the following exchanges are open for trading:
- NYSE Arca: 4:00 a.m. to 9:30 a.m. EST
- Nasdaq: 4:00 a.m. to 8:00 p.m. EST (Pre-Market and After Hours trading begins at 4:00 a.m. and 8:00 p.m., respectively)
- AMEX: 9:30 a.m. to 4:00 p.m. EST
- OTCBB: 8:00 a.m. to 5:30 p.m. EST
Benefits of extended-hours trading
Extended-hours trading provides investors with the opportunity to trade stocks outside of regular trading hours. This can be beneficial for investors who want to trade when the stock market is not open, or for investors who want to take advantage of news that occurs after the market has closed.
Extended-hours trading can also be beneficial for investors who want to avoid the weekday slumps that often occur during regular trading hours.
Risks of extended-hours trading
One of the risks of extended-hours trading is that there may be less liquidity during these times. This means that there may be fewer buyers and sellers, and the bid-ask spread (the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept) may be wider.
Another risk of extended-hours trading is that the price of a stock may be more volatile during these times. This means that the price of a stock may fluctuate more rapidly, and it may be more difficult to predict where the price will go.
If you’re considering extended-hours trading, be sure to weigh the risks and benefits before you make any trades.
If you’re looking to avoid the weekday slumps, extended-hours trading may be for you. Just be sure to weigh the risks and benefits before you make any trades.