Things to know about the U.S. stock trading hours
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A stock exchange is a place where traders participate in buying and selling stocks. This market has trading hours (opening and closing) according to a certain time frame of the day. Stock markets in all countries operate at the same local time in that country. For example, investors in Japan who want to participate in the US stock market must trade according to the US stock market’s trading hours. The US stock market is open from 9:30 a.m. to 4 p.m. EST. The following article learns about the US stock trading time frame and what you need to know.
What are US stock trading hours?
Stock trading hours, also known as trading sessions, are the time when investors can participate in all activities of buying, selling, exchanging, placing orders, and canceling investment orders on exchanges. This is the time period during which the seller and the buyer conduct an instant and public transaction. A trading session usually has an opening and closing time.
US Stock Exchange is the operating hours of stock exchanges in the United States, including the New York Stock Exchange, the NASDAQ, the American Stock Exchange, and several others. All exchanges have the same operating hours.
The US stock market has trading hours based on the ET Time Zone. Now there are two types of ET, EST, and EDT.
- EST stands for Eastern Time (EST) and is calculated according to the time in New York, Washington DC, Florida, and other US cities during the fall and winter months. It is 5 hours behind Coordinated Universal Time (UTC-5) or Greenwich Mean Time.
- EDT stands for Eastern Daylight Time (EDT) and is calculated according to the summer and spring months in US cities. It is 4 hours behind Coordinated Universal Time (UTC-4) or Greenwich Mean Time.
US stock market trading hours
The US has two largest exchanges, the New York Stock Exchange (NYSE) and the Nasdaq. Both of these exchanges are based in New York and are open Monday through Friday from 9:30 a.m. to 4 p.m. EST. In addition, there are three trading sessions on the US stock market including:
- Standard trading hours: from 9:30 a.m. to 4 p.m. EST
- Pre-market trading: from 4 am to 9:30 am EST
- After-hours trading: from 4 pm to 8 pm EST
Additionally, common stock futures contracts begin trading at 6 p.m. EST on Sunday. Stock futures are contracts in which traders speculate on the price of the underlying asset.
US stock market holidays are closed
Outside of regular trading hours, the US stock market is closed for nine holidays. Before and after the holiday, the market closes early, usually ending the trading session at 1 pm. Holidays that will close the US stock market in 2022 include:
- Monday, January 17: Martin Luther King Jr Day.
- Monday, February 21: Washington’s Birthday
- Friday, April 15: Good Friday
- Monday, May 30: Memorial Day
- Monday, June 10: Sixteenth National Day
- Monday, July 4: Independence Day
- Monday, September 5: Labor Day
- Thursday, November 24: Thanksgiving
- Monday, December 26: Christmas
US stock trading hours summer and winter
The US stock market has different operating hours according to summer and winter. The operating hours of the US stock market in summer and winter are as follows:
Standard trading hours:
- Summer: from 9:30 am to 4 pm EST (Vietnam time 21:30 – 4:00 next day)
- Winter: from 10:30 a.m. to 5 p.m. EST (Vietnam time 22:30 – 5:00 the next day)
Before market hours:
- Summer: from 8 a.m. to 9:30 a.m. EST (Vietnam time 20:00 – 21:30)
- Winter: from 9am to 10:30am EST (Vietnam time 21:00 – 22:30)
After market hours:
- Summer: from 4pm to 6:30pm EST (Vietnam time 4:00 – 6:30)
- Winter: 5:00 p.m. to 7:30 p.m. EST (Vietnam time 5:00 – 7:30)
In addition to the general regulations on trading hours on the US stock market, there are some special cases, in which the US stock exchanges may perform a circuit breaker-suspend trading. This situation occurs when the market has large declines, helping to slow down the decline and rebalance the market. Depending on the state of the market drop, US stock exchanges have different shutdown periods:
- Price reduced by 7% from the listed price: the stock exchange will be suspended for 15 minutes. If this drop happens after 3:25 pm (US time), there will not be this pause.
- Price down 13% from list price: same with 7% drop.
- Price 20% off list price: suspend all trading for the day and start again the next business day.
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