Stock Market Trading Hours: When Does the Stock Market Open?

In the financial markets, the term "trading hours" refers to the specific times during which a financial exchange/market operates, and allows the buying and selling of financial instruments such as stocks, bonds, commodities, or currencies. These hours are determined by the exchange's rules and regulations, and are typically limited to specific windows of time on business days. 

Trading hours can vary significantly between different financial exchanges/markets due to differences in time zones and regional trading practices. An awareness and understanding of pertinent trading hours is crucial for all market participants, because investors and traders need to know when they can execute orders. During trading hours, market participants also monitor fluctuations in their holdings - as well as the broader portfolio - in order to assess and manage risk. 

Stock exchanges are regulated financial marketplaces where financial instruments are bought and sold. In the United States, the primary stock exchanges are the New York Stock Exchange (NYSE) and the Nasdaq Stock Market. Both of these exchanges have regular trading hours, operating from 9:30 AM to 4:00 PM Eastern Time (ET), Monday through Friday (except on holidays). 

The Toronto Stock Exchange (TSX) is the primary stock exchange in Canada. The regular trading hours for the TSX are from 9:30 AM to 4:00 PM Eastern Time (ET), Monday through Friday (except on holidays).

Market holidays, also known as trading holidays or stock market holidays, are specific days when financial markets, including stock exchanges, are officially closed for trading. 

These closures typically apply to both regular trading hours and extended trading sessions, such as pre-market and after-hours trading. Exchange holidays holidays are usually classified into two groups, as detailed below: 

• National Holidays: These are holidays that are observed nationwide and may include public holidays like New Year's Day, Independence Day, and Christmas.

• Exchange-Specific Holidays: Some market holidays are specific to individual stock exchanges and may not align with national holidays. These can include exchange anniversary days or special closing days.

In 2024, the New York Stock Exchange and the Nasdaq Stock Market will both observe 10 full-day market holidays. In addition to those 10 full-day market holidays, there are also 3 half-day market holidays on July 3, November 29, and December 24, as highlighted below:

* The markets will close early at 1:00 p.m. (1:15 p.m. for eligible options) on Wednesday, July 3, 2024.

** The markets will close early at 1:00 p.m. (1:15 p.m. for eligible options) on Friday, November 29, 2024.

*** The markets will close early at 1:00 p.m. (1:15 p.m. for eligible options) on Tuesday, December 24, 2024. 

It should be noted that market holidays usually vary from one country to another, so investors and traders should always confirm the specific market holidays for any exchange they actively trade on. 

Pre-market and after-hours trading refer to the extended trading sessions that take place outside the regular trading hours. These sessions allow market participants to buy and sell securities before the official market opening and after the closing bell.

Pre-Market Trading

• Timing: Pre-market trading occurs before the official opening of a stock exchange's regular trading hours (e.g. before the opening bell). 

• Hours: The exact timing of pre-market trading varies by exchange, but typically starts several hours before the regular trading session begins. It can begin as early as 4:00 AM or 7:00 AM, and extend until the opening bell.  

• Availability: Pre-market trading is usually available to institutional investors, active traders, and some retail brokerage clients.

• Purpose: The pre-market session allows market participants to react to news events, earnings reports, or other developments that may occur outside regular trading hours. It also provides an opportunity to manage or adjust orders ahead of the opening bell. 

After-Hours Trading

• Timing: After-hours trading takes place after the regular market has closed for the day (e.g. after the closing bell). 

• Hours: The exact timing of the after-hours session varies by exchange but typically begins shortly after the market closes and extends for a few hours into the evening. Some exchanges offer after-hours trading through 8:00 PM or later.

• Availability: After-hours trading is usually available to institutional investors, active traders, and some retail brokerage clients.

• Purpose: After-hours trading provides a chance for market participants to respond to news events or earnings releases that occur after the regular trading session is complete. This period can also be used to manage or adjust positions based on post-market developments.

Pre-market and after-hours trading sessions offer opportunities for traders to buy and sell securities outside of regular market hours. However, these sessions may have limitations, including lower liquidity, wider spreads, and increased price volatility. 

Not all securities are available for trading during these times, and traders should be prepared for price gaps caused by news events or earnings reports. Risk management and careful planning are essential when engaging in pre-market and after-hours trading, and traders should be aware of any additional fees that may apply. 

At tastytrade, you have the flexibility of trading before and after standard market hours with stock & ETF orders. tastytrade's extended hours session is 1.5 hours before the open, and four hours after the market closes each trading day. Click here for more information.

Some of the key considerations for pre-market and after-hours trading sessions are detailed below: 

• Stay Informed: Be well-informed about news and events that could impact the stocks or securities you plan to trade. Earnings reports, economic data releases, and company announcements can have a significant effect on prices.

• Understand the Risks: Recognize that pre-market and after-hours trading can be riskier due to reduced liquidity. Prices can be more erratic, and spreads wider. Only trade during these sessions if you have a clear strategy and risk management plan in place.

• Consider Using Limit Orders: In illiquid markets, use limit orders to specify the price at which you are willing to buy or sell. Avoid market orders, which can result in unfavorable fills due to price gaps.

• Monitor Market Depth: Keep an eye on the order book and market depth to gauge demand and supply levels. This information can help you anticipate potential price movements.

• Consider Setting Stop-Loss Orders: Implement stop-loss orders to limit potential losses. Determine your risk tolerance and set stop-loss levels accordingly.

• Watch for Overnight Gaps: Overnight gaps, where the price at the open differs significantly from the previous day's close, are common in extended trading sessions. Be prepared for such gaps and have a plan in place to manage them.

• Consider Starting with Smaller Positions: If you are new to pre-market and after-hours trading, consider starting with smaller positions until you gain experience and confidence.

• Focus on High Liquidity Listings: Focus on stocks or securities that are actively traded during extended hours. Highly liquid assets tend to have narrower spreads and are generally easier to trade.

• Consider Paper Trading: If you are unsure about your pre-market and after-hours trading approach, consider paper trading (e.g. simulated trading without real money) to practice and develop your strategies.

• Review and Learn: After each extended trading session, review your trades and assess what worked and what didn't. Learn from your experiences to improve your approach. 

There are a handful of key stock exchanges in Europe and the United Kingdom, with each serving as a marketplace for the trading of stocks and other financial instruments.

The trading hours for these exchanges are highlighted below:

Much like Europe, Asia is home for some of the world’s most prominent stock exchanges. As noted in the graphic below, six of the world’s top ten exchanges are located in Asia. 

The trading hours for these exchanges are also highlighted below:

There are a handful of smaller, regional stock exchanges in South America, but the largest from a global perspective is the B3 in Brazil. 

The trading hours for the B3 are highlighted below:

Australia has several regional stock exchanges, but the Australian Securities Exchange (ASX) is the largest and most prominent, serving as the main marketplace for trading equities and other financial instruments.

The trading hours for the ASX are highlighted below: 

There are a handful of smaller, regional stock exchanges in Africa, but the largest from a global perspective is the Johannesburg Stock Exchange (JSE) in South Africa. 

The trading hours for the JSE are highlighted below: