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 interval of the day. The stock markets of all countries operate simultaneously in that country. For example, investors in Japan who want to participate in the U.S. stock market must trade according to U.S. stock market trading hours. The U.S.
stock market is open from 9:30 a.m. to 4:00 p.m. EST. The following article learns about the time period of stock trading in the United States and what you need to know.
What are the trading hours of US stocks?
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 the stock exchange. This is the period of time during which the seller and buyer conduct an instant and public transaction. A trading session usually has an opening and closing time.
US Stock Exchange is the opening hours of stock exchanges in the United States, including the New York Stock Exchange, NASDAQ, American Stock Exchange and many others. All exchanges have the same opening hours.
The US stock market has trading hours based on the ET time zone. There are now two types of ET, EST and EDT.
- EST stands for Eastern Time (EST) and is calculated based on the weather in New York, Washington DC, Florida and other U.S. cities during the fall and winter months. It is 5 hours behind Coordinated Universal Time (UTC-5) or Greenwich Average Time.
- EDT stands for Eastern Daylight Time (EDT) and is calculated based on the summer and spring months in U.S. cities. It is 4 hours behind Coordinated Universal Time (UTC-4) or Greenwich Middle Time.
Trading hours of the US stock market
The United States has two larger stock 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 4:00 p.m. EST. In addition, there are three trading sessions on the US stock market, including:
- Standard Trading Hours: 9:30 a.m. to 4:00 p.m. EST
- Pre-Market Trading: 4 a.m. to 9:30 a.m. EST
- Out-of-Hours Trading: 4 p.m. to 8 p.m. EST
In addition, common stock futures contracts begin trading at 6:00 p.m. EST on Sunday. Stock futures are contracts in which traders speculate on the price of the underlying asset.
U.S. stock market holidays are closed
Outside of normal trading hours, the U.S. stock market is closed for nine public holidays. Before and after the holidays, the market closes early, usually ending the trading session at 13:00. Holidays that will close the U.S. stock market in 2022 include:
- Monday, January 17: Martin Luther King Jr Day.
- Monday, February 21: Washington’s birthday
- Friday 15 April: Good Friday
- Monday, May 30: Memorial Day
- Monday 10 June: Sixteenth National Day
- Monday 4 July: Independence Day
- Monday 5 September: Labour Day
- Thursday 24 November: Thanksgiving
- Monday 26 December: Christmas
U.S. Stock Trading Hours Summer and Winter
The US stock market has different opening hours depending on summer and winter. The opening hours of the US stock market in summer and winter are as follows:
Standard trading hours:
- Summer: 9:30 a.m. to 4:00 p.m. EST (Vietnam time 9:30 p.m. – 4:00 a.m. next day)
- Winter: 10:30 a.m. to 5:00 p.m. EST (Vietnam 10:30 p.m. – 5:00 a.m. the next day)
Before market hours:
- Summer: 8:00 a.m. to 9:30 a.m. EST (Vietnam 8:00 p.m. – 9:30 p.m.)
- Winter: 9:00 a.m. to 10:30 a.m. EST (Vietnam 9:00 p.m. – 10:30 p.m.)
After market hours:
- Summer: 4:00 p.m. to 6:30 p.m. EST (Vietnam 4:00 a.m. – 6:30 a.m.)
- Winter: 5:00 p.m. to 7:30 p.m. EST (Vietnam 5:00 a.m. – 7:30 a.m.)
In addition to the general rules on trading hours on the US stock market, there are some special cases, in which US stock exchanges can perform a trade with suspension of the circuit breaker. This situation occurs when the market has large declines, helping to slow the decline and rebalance the market. Depending on the state of market decline, U.S. stock exchanges have different closing periods:
- Price reduced by 7% compared to the list price: the bag will be suspended for 15 minutes. If this drop occurs after 3:25 p.m. (U.S. time), there will be no such break.
- Price down 13% compared to the list price: the same with a drop of 7%.
- Price 20% off the list price: suspend all trading for the day and start again the next business day.
Open a US stock trading account by following the link below: