If you’re new to stock trading on the Stock Market, understanding the different sessions is vital. Here’s a straightforward breakdown of each session, addressing common questions:
Pre-Market Trading:
- Happens before the official opening at 9:30 AM ET.
- Starts at 4:00 AM and ends at 9:30 AM ET.
- Lower trading volumes and wider bid-ask spreads.
- Helps respond to overnight news and announcements.
Regular Trading Hours:
- Core trading session from 9:30 AM to 4:00 PM ET.
- Highest trading volumes and more liquidity.
- Market orders are available for quick transactions.
- Market opening and closing times can be more volatile.
After-Hours Trading:
- Occurs after regular hours, from 4:00 PM to 8:00 PM ET.
- Lower liquidity and higher bid-ask spreads.
- Allows trading based on late news and earnings reports.
- Use limit orders to control trade prices.
FAQ:
What Time Does the Stock Market Open?
The stock market opens at 9:30 AM Eastern Time on weekdays.
When Does Pre-Market Start?
Pre-market trading begins at 4:00 AM Eastern Time before the official opening.
How to Trade Pre-Market?
To trade early, you need a brokerage account that offers pre-market trading.
What is After-Hours Trading? How Does It Work?
After-hours trading happens after regular hours, allowing you to trade outside typical market hours. It’s like regular trading, but with fewer people and wider price differences.
When Does After-Hours Trading End?
After-hours trading ends at 8:00 PM Eastern Time.
How Long is After-Hours Trading?
After-hours trading lasts around four hours, starting at 4:00 PM Eastern Time.