Trading Hours in the US
Regular trading days for US stocks are from Monday to Friday. Trading is not supported on weekends or holidays.
Eastern Daylight Time (EDT): typically from March to November
Eastern Standard Time (EST): typically from November to the following March
Regular Trading Hours
Regular trading hours are from 09:30 to 16:00 Eastern Time (ET) from Monday to Friday.
Extended Trading Hours
Besides regular trading hours, extended hours trading is available in the US. Pre-market trading usually runs between 04:00 and 09:30 ET. After-hours trading runs from 16:00 to 20:00 ET. However, specific extended hours may vary by securities brokers. Webull supports full extended hours trading, which includes pre-market and after-hours trading, up to 16 hours of trading per trading day.
(Note: Eastern Time)
*US Eastern Time (EST)
Pre-Market: 4:00 AM - 9:30 AM
Regular Trading Hour: 9:30 AM - 4:00 PM
Post-Market: 4:00 PM - 8:00 PM
Half-Day Trading Hour: 9:30 AM - 1:00 PM
*Malaysian Time (MYT) Day Light Saving (March to November)
Pre-Market: 4:00 PM - 9:30 PM
Regular Trading Hour: 9:30 PM - 4:00 AM
Post-Market: 4:00 AM - 8:00 AM
Half-Day Trading Hour: 9:30 PM - 1:00 AM
*Malaysian Time (MYT) Non-Day Light Saving (November to March)
Pre-Market: 5:00 PM - 10:30 PM
Regular Trading Hour: 10:30 PM - 5:00 AM
Post-Market: 5:00 AM - 9:00 AM
Half-Day Trading Hour: 10:30 PM - 2:00 AM
Why is There Extended Trading in the US?
US stock companies generally release corporate earnings before or after the market closes, which will result in greater price volatility. Therefore, extended hours trading provides investors with more trading time and opportunities. As a global market, the US stock market is influenced by Asia and Europe, whose primary market activities occur outside of the US regular hours. Through extended hours, investors can capture more potential trading opportunities.
Extended Trading Risks
Although pre-market and after-hours trading can provide investors with more trading opportunities and trading time, there are still risks involved. Before you start extended hours trading, let us look at the related risks.
Limited Liquidity
There is usually less trading volume during extended hours as compared to regular hours, which contributes to the difficulty in executing trades. Some stocks might not be traded at all during extended hours.
Increased Volatility
Volatility is more significant during pre-market or after-hours trading sessions than in regular trading sessions. As a result, pending orders during pre-market or after-hours sessions may be partially filled or unable to be filled due to volatility risk. The trading price may be less favorable than the price in regular trading hours.
Price Risk
The trading price outside regular trading hours might not match the price during regular trading hours. As a result, the trading price may be less favorable than the price in regular trading hours.
Risks of Breaking News Announcement
Typically, issuers would publish breaking news that may affect their shares outside the regular trading hours. Similarly, important financial information disclosures are usually released outside the regular trading hours. Breaking news may be released before the market opens or after the market closes, which, combined with lower liquidity and higher volatility, may cause the stock to reach an unsustainable exaggerated price in a short time.
Risk of Wider Spreads
Spread refers to the difference between the bid and ask prices. Lower liquidity and higher volatility in the extended hours often lead to wider bid-ask spreads.