Have you ever thought about investing in the markets of other countries? Being an investor, starting, midway, or pro – you obviously have. Exchanges around the world function at the same hours as the United States Exchanges, but actually at local time.
The breakdown of common stock market hours for big exchanges around the glove can assist you to coordinate your international trades. The time is listed in both the US time zone and the Universal Time Zone. It’s also important that you know that most markets close for lunch – that shouldn’t be a huge shock – it is quite fair enough. Also, while we speak about that, mostly some exchanges also close for the holidays, most national holidays. This means we can’t expect the Indian stock market to be closed on Thanksgiving.
To make this much easier, I think we go one at a time. Let’s look at them like individuals instead of whole.
Trading Hours of Stock Exchanges Around the World
For investors who want to invest internationally and in international exchanges, it is an open option, but do you know what the problem is? The local time is that of the United States. Though traders can place orders before they open, trades need to be executed when the market is open and operating.
Mentioned here is the regular working or operating hours of stock exchanges in different countries.
The Toronto Stock Exchange: 9:30 AM to 4:00 PM EST
2. Hong Kong
The Hong Kong Stock Exchange: 9:30 PM to 4:00 AM EST
The Shanghai Stock Exchange: 9:30 PM to 3 AM EST
The Bombay Stock Exchange: 11:30 PM to 6:30 AM EST
The Tokyo Stock Exchange: 8:30 PM to 2:00 AM EST
6. The Netherlands
The Euronext Stock Exchange: 2:00 AM to 10:40 AM EST
7. The United Kingdom
The London Stock Exchange: 3:00 AM to 11:30 PM EST
Your share market investment can vary based on time with the region but will still help you expand your portfolio and make more profits.
Extended Trading Hours
Extended trading hours are when the market is closed, but Still, an investor buys and sells securities outside the regular time. They are trading through electronic communications networks – this means both the pre market and after hours market. Still, the volume of trades is limited since there are quite fewer participants.
An investor usually looks forward to trading outside general hours when major news like earnings would release to inspire them to buy and sell. The after hours trading is a strong indicator of the direction of the market open, and you should know that most of the extended hours trades happen close to the normal trading hours. This is because the relevant news is usually released either right before or after the market closes and opens respectively.
There are time zones or phases to the timing of the market and their trading. Let’s look at each of them here.
Trading Sessions of Every Market
The Pre Market Hours – This period is from 4 AM to 9 AM EST.
The Regular Market Hours – This period is from 9:30 AM to 4:00 PM EST.
The After Market Hours – This phase is from 4 PM to 8 PM EST.
Though there are advantages to trading after hours, and you have much more time to process and analyze, there are some risks associated with it.
Risks of Trading After Hours
You should be aware of these points and understand the dangers of investing after hours.
There is lesser liquidity: There are more buyers and sellers during the Trading Hours of the market. After hours trades gave less trading volume for the stock, and it can be harder to convert the shares into cash.
Wide spreads: lower trading volume can show a wide spread among the bidders and ask prices. It could be hard for you to have your order executed at a favorable price.
There is tough competition for an individual: if you are an individual investor and you have the opportunity to trade after hours, you will be competing against large institutional investors that have the access to more resources.
Volatility: During an after hours trade the Market is thinly traded in comparison to trading during regular hours and you are more likely to experience severe price fluctuations in after hours trading than the regular.
How to Trade After Market Hours?
This question definitely popped into your head, but no worries – that is covered here too. You will be trading just like you do during the regular hours by logging into your brokerage account and selecting a stock that you want to trade. The only difference would be that you will have to use a limit order when you buy or sell a stock, rather than a market order that you would use during regular trading. But keep one thing in mind, you have got to be more mindful that bid ask spreads could be wider, and the stock prices can be more volatile.
There is one amusing thing about risk. Where there is risk, there is always room for more reward. That’s a given fact in the matter of trading. When you trade out of normal times it comes with several Perks and allows you to react to news and more.