US Stock Market Trading Hours and the Features of Each Market Session
4 min read · · Korean original
Contents 4
Hello, this is Bitpunk. Do you want to invest in the US stock market but find the time difference and the many market sessions confusing? In this post, we'll look at US stock trading hours, along with the features of each market session and what to watch out for.
US Stock Trading Hours
The regular market for trading US stocks runs from 10:30 PM to 5:00 AM the next day (Korean time). However, you can also take part in the market at many other times outside the regular session. The markets where you can trade US stocks and their exact hours are as follows.
| Market | Daylight Saving Time (Korean time) | Standard Time (Korean time) |
|---|---|---|
| Day Market | 10:00 AM – 5:00 PM | 11:00 AM – 6:00 PM |
| Pre-Market | 5:00 PM – 10:30 PM | 6:00 PM – 11:30 PM |
| Regular Market | 10:30 PM – 5:00 AM | 11:30 PM – 6:00 AM |
| After-Market | 5:00 AM – 9:00 AM | 6:00 AM – 10:00 AM |
Daylight Saving Time and Market Opening Hours
If you look at the table above, you'll notice there are two sets of hours. One applies during daylight saving time, and the other applies when daylight saving time is not in effect. What is daylight saving time, you ask?
In the US, a system called daylight saving time (also known as summer time) moves the clocks forward by one hour during the summer months. For example, during daylight saving time, people go to work one hour earlier and leave work one hour earlier. In other words, the clocks move forward by one hour, and the same applies to the stock market.
Daylight saving time begins on the second Sunday of March each year and lasts until the first Sunday of November. So during that period, the hours for trading US stocks are calculated one hour earlier.
The Different Markets and Their Features
From Korea, there are four main sessions in which you can trade US stocks: the Day Market, Pre-Market, Regular Market, and After-Market. Here are the features of each.
1. Day Market
In the Day Market, stocks are traded through an alternative trading system, and it is the time slot when investors in Asia, such as Korea, are active. The Day Market has low liquidity and high volatility, but if you use it well, you may be able to catch good trading opportunities.
2. Pre-Market
The Pre-Market is a session that opens before the regular session of major exchanges such as the New York Stock Exchange (NYSE) and Nasdaq. The Pre-Market often reacts to economic news or global events that happened overnight, and because trading volume is small and liquidity is low, volatility can be high.
3. Regular Market
The Regular Market, or main session, is when US stock trading officially begins. The largest number of investors and institutions take part, so trading volume and liquidity reach their peak. During regular hours, all exchanges provide market services, offering investors a stable trading environment.
4. After-Market
The After-Market is a market that operates after the regular session closes. Trading volume is even smaller than in the Pre-Market, and volatility is high, so caution is needed. However, like the other markets, if you use it well, you may be able to spot good opportunities based on price differences from the Regular Market.
Wrapping Up
The US market is the largest in the world with tremendous growth, so investors from all over the world are rushing to take part in it. However, outside the regular session, in the Day Market or Pre-Market, there is a risk of large price swings as well as slippage.
Also, after the market opens, prices may move in the opposite direction from the previous session. So before you invest, don't forget to make a proper plan and prepare a risk management strategy.
That wraps up our look at the opening and closing hours of the various markets where you can trade US stocks, along with their features. If you found this post helpful, please tap the heart button below and share it widely. Thank you.
