When does the USA stock market open and close?
The US stock market operates on a regular schedule that could be easy to remember. The two main stock exchanges in the United States are the New York Stock Exchange (NYSE) and the US100. Both of these exchanges follow the same trading hours.
Regular trading hours
The New York Stock Exchange (NYSE) and US100 open from Monday through Friday, starting at 9:30 a.m. and closing at 4:00 p.m. Eastern Time. During these hours, you could trade stocks, ETFs, and various other securities.
Pre-market and after-hours trading
Beyond regular trading hours, there is also pre-market and after-hours trading. Pre-market trading typically starts as early as 4:00 a.m. and goes until 9:30 a.m. After-hours trading begins at 4:00 p.m. and continues until 8:00 p.m. Eastern Time. These extended hours could be useful for reacting to news or earnings reports released outside the regular trading session, but they also come with increased volatility and lower liquidity, which could lead to wider spreads and more significant price swings.
Market holidays
It’s important to note that the USA stock market (NYSE and US100) is closed on weekends (Saturday and Sunday) and during certain holidays like New Year’s Day, Independence Day, Thanksgiving, and Christmas. On these days, no trading takes place, and you should manage your trades accordingly.
Time to trade US stocks
While you could trade US stocks at any time during regular market hours, some periods are more active and offer better opportunities for trading. Here’s a breakdown:
Opening hours (9:30 a.m. to 10:30 a.m. Eastern Time): The first hour of trading is often the most volatile. During this time, the market reacts to news, earnings reports, and overnight developments. High volatility means more significant price movements, which could offer opportunities for traders to capitalize on these fluctuations. However, this also increases the risk, so it’s crucial to have a clear strategy and risk management in place.
Midday trading (10:30 a.m. to 12:00 p.m. Eastern Time): Midday trading tends to be less volatile as traders settle into the day’s trends. Volume often decreases, leading to more stable price movements. This period could be ideal for traders who prefer less volatility and more predictable market behavior.
Power hour (3:00 p.m. to 4:00 p.m. Eastern Time): The last hour of trading, known as the "power hour," is another highly active period. Traders and investors make final adjustments to their positions before the market closes, leading to increased volume and volatility. This hour could offer significant trading opportunities, especially if you’re looking to capitalize on end-of-day price movements.
After-hours trading (4:00 p.m. to 8:00 p.m. Eastern Time): While after-hours trading offers the chance to react to late-breaking news or earnings reports, it comes with higher risks due to lower liquidity and wider spreads. This period could be useful for experienced traders who understand the risks involved.
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How to take a position on US stocks through Skilling
Taking a position on US stocks through Skilling is a straightforward process that allows you to trade CFDs (Contracts for Difference). CFDs enable you to speculate on the price movements of stocks without actually owning the underlying assets. Here’s how you could do it:
1. Open a Skilling account : The first step is to sign up for a trading account with Skilling. You’ll need to provide personal information and complete the verification process. Once your account is set up, you can deposit funds using various payment methods such as bank transfer, credit card, or e-wallet.
2. Access the trading platform : Log in to Skilling’s trading platform, which is available via web browser, mobile app, or desktop application. The platform offers a user-friendly interface and a range of tools to help you make informed trading decisions.
3. Choose the US stock you want to trade : Skilling offers 900+ CFDs on a wide range of popular US stocks. Here are a few examples:
- Apple Inc. (AAPL): Apple is one of the world’s leading technology companies, known for its iPhones, iPads, and Mac computers. Apple’s stock is highly liquid and often experiences significant price movements, making it a popular choice among traders.
- Amazon.com Inc. (AMZN): Amazon is a global e-commerce giant with a diversified business model that includes cloud computing and entertainment. Amazon’s stock is also highly traded and could be an excellent choice for those looking to trade a major tech company.
- Tesla Inc. (TSLA): Tesla is a leading electric vehicle manufacturer, known for its innovation and rapid growth. Tesla’s stock is famous for its volatility, which could provide numerous trading opportunities.
- Microsoft Corporation (MSFT): Microsoft is a technology powerhouse with a broad portfolio that includes software, cloud computing, and gaming. Microsoft’s stock is a stable option with consistent price movements, suitable for both short-term and long-term trading strategies.
4. Analyze the market : Before taking a position, analyze the stock using technical analysis, fundamental analysis, or a combination of both. Skilling’s platform provides various charts, indicators, and tools to help you assess the market conditions.
5. Open a position : Decide whether you want to go long (buy) if you believe the stock price will rise, or go short (sell) if you think the price will fall. Enter the amount you wish to trade and set any leverage if applicable. Leverage allows you to control a larger position with a smaller initial investment but increases both potential profits and losses.
6. Set stop-loss and take-profit orders : To manage your risk, set stop-loss and take-profit orders. A stop-loss order automatically closes your position if the price moves against you to a certain level, limiting your losses. A take-profit order closes your position when the price reaches a predetermined level, securing your profits.
7. Monitor your position : Keep an eye on your open position and the market. US stocks could be volatile, especially during key events like earnings releases or economic reports. Regular monitoring allows you to make adjustments as needed.
8. Close your position : When you’re ready, close your position manually or let it close automatically if your stop-loss or take-profit levels are reached. Closing your position locks in your profits or limits your losses.
Conclusion
Trading US stocks could be an exciting and potentially profitable activity, especially when you understand the market’s operating hours and the best times to trade. By using a platform like Skilling, you could take positions on popular US stocks through CFDs, allowing you to speculate on price movements without owning the actual shares. However, it’s important to apply proper risk management strategies, such as setting stop-loss orders and carefully monitoring your trades, to protect your investment. Source: investopedia.com
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