Trading day

Last updated

In business, the trading day or regular trading hours (RTH) is the time span that a stock exchange is open, as opposed to electronic or extended trading hours (ETH). For example, the New York Stock Exchange is, as of 2020, open from 9:30 AM Eastern Time to 4:00 PM Eastern Time. Trading days are usually Monday through Friday. When a trading day ends, all trading ends and is frozen in time until the next trading day begins. There are several special circumstances which would lead to a shortened trading day, or no trading day at all, such as on holidays or on days when a state funeral of a head of state is scheduled to take place.

Contents

NYSE and NASDAQ

The NYSE and NASDAQ average about 252 trading days a year. This is from 365.25 (days on average per year) * 5/7 (proportion work days per week) - 6 (weekday holidays) - 4*5/7 (fixed date holidays) = 252.03 ≈ 252.

The holidays where the stock exchange is closed are New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day; there are also some holidays where trading is permitted, including Columbus Day, Veterans Day, and New Year's Eve. If Juneteenth, Independence Day, Christmas Day and New Year's Day fall on a weekend, the public holiday is observed on the following Monday instead, meaning that some years have fewer trading days than others. [1]

Up to three trading days (July 3, the day after Thanksgiving, and Christmas Eve) are shortened, i.e. the exchanges are open from 9:30AM–1:00PM, depending on where they fall in the calendar year (if July 3 or Christmas Eve fall on a weekend, the shortened day is simply skipped).

Juneteenth was added as a national holiday and market holiday on June 17, 2021. [2]

Trading day time zones

Each stock exchange has opening hours that are based on specific time zones. People can trade in these exchanges remotely using electronic trading platforms. For those trading in different parts of the world, there are unique trading days based on the hours associated with any given time zone. For example, NASDAQ is open 9:30–16:00 ET and anyone outside of the Eastern Time Zone will have a different trading day (for example, in Vancouver a trading day would run from 6:30–13:00). During the part of the year when North America is on standard time, it would be 17:30–24:00 in Moscow, and in Shanghai it would be 22:30–5:00. [3] Remote traders should find their trading hours based on the stock exchange's hours and time zone.

See also

Related Research Articles

<span class="mw-page-title-main">NYSE American</span> Stock exchange located in New York City

NYSE American, formerly known as the American Stock Exchange (AMEX), and more recently as NYSE MKT, is an American stock exchange situated in New York City. AMEX was previously a mutual organization, owned by its members. Until 1953, it was known as the New York Curb Exchange.

<span class="mw-page-title-main">Nasdaq</span> American stock exchange

The Nasdaq Stock Market is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange. The exchange platform is owned by Nasdaq, Inc., which also owns the Nasdaq Nordic stock market network and several U.S.-based stock and options exchanges.

<span class="mw-page-title-main">New York Stock Exchange</span> American stock exchange

The New York Stock Exchange is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is the largest stock exchange in the world by market capitalization.

In 2001, stock prices took a sharp downturn in stock markets across the United States, Canada, Asia, and Europe. After recovering from lows reached following the September 11 attacks, indices slid steadily starting in March 2002, with dramatic declines in July and September leading to lows last reached in 1997 and 1998. The U.S. dollar increased in value relative to the euro, reaching a 1-to-1 valuation not seen since the euro's introduction.

<span class="mw-page-title-main">Shopping hours</span> Time during which shops are open

Customs and regulations for shopping hours vary between countries and between cities.

<span class="mw-page-title-main">S&P 500</span> American stock market index

The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of December 31, 2021, according to surveys, more than $7.1 trillion was invested in assets tied to the performance of the index.

<span class="mw-page-title-main">London Stock Exchange</span> Stock exchange in the City of London

London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. As of August 2023, the total market value of all companies trading on the LSE stood at $3.18 trillion. Its current premises are situated in Paternoster Square close to St Paul's Cathedral in the City of London. Since 2007, it has been part of the London Stock Exchange Group. The LSE is the most-valued stock exchange in Europe as of 2023. According to the 2020 Office for National Statistics report, approximately 12% of UK-resident individuals reported having investments in stocks and shares. According to the 2020 Financial Conduct Authority (FCA) report, approximately 15% of UK adults reported having investments in stocks and shares.

<span class="mw-page-title-main">Federal holidays in the United States</span> U.S. government holidays

National holidays in the United States are 11 calendar dates designated by the U.S. federal government as official holidays. On these days non-essential national offices are closed although the employees receive pay.

All official holidays in Finland are established by acts of Parliament. The official holidays can be divided into Christian and non-Christian holidays. The main Christian holidays are Christmas, New Year's Day, Epiphany, Easter, Ascension day, Pentecost, Midsummer Day, and All Saints' Day. The non-Christian holidays are May Day and the Independence Day of Finland.

<span class="mw-page-title-main">Public holidays in the United States</span> Holidays in the United States of America

In the United States, public holidays are set by federal, state, and local governments and are often observed by closing government offices or giving government employees paid time off. The federal government does not require any private business to close or offer paid time off, as is the case for most state local governments, so employers determine which holidays to observe.

Sunday shopping or Sunday trading refers to the ability of retailers to operate stores on Sunday, a day that Christian tradition typically recognises as a day of rest. Rules governing shopping hours, such as Sunday shopping, vary around the world but many countries and subnational jurisdictions continue to ban or restrict Sunday shopping, such as Poland. In the United States, rules are enshrined within Blue laws.

The ex-dividend date is an investment term involving the timing of payment of dividends on stocks of corporations, income trusts, and other financial holdings, both publicly and privately held. The ex-date or ex-dividend date represents the date on or after which a security is traded without a previously declared dividend or distribution. The opening price on the ex-dividend date, in comparison to the previous closing price, can be expected to decrease by the amount of the dividend, although this change may be obscured by other influences on the stock's value.

<span class="mw-page-title-main">Academic year</span> Period of time which schools, colleges and universities use to measure a quantity of study

An academic year or school year is a period of time which schools, colleges and universities use to measure a quantity of study. It comprises school days and school holidays. Duration of school days, school year, and holidays vary across the world.

<span class="mw-page-title-main">Philippine Stock Exchange</span> National stock exchange of the Philippines

The Philippine Stock Exchange, Inc. is the national stock exchange of the Philippines. The exchange was created in 1992 from the merger of the Manila Stock Exchange and the Makati Stock Exchange. Including previous forms, the exchange has been in operation since 1927. The PSE's headquarters is located at the Philippine Stock Exchange Tower, located along the One Bonifacio High Street complex in Bonifacio Global City.

The October 27, 1997, mini-crash is a global stock market crash that was caused by an economic crisis in Asia, the "Asian contagion", or Tom Yum Goong crisis. The point loss that the Dow Jones Industrial Average suffered on this day currently ranks as the 18th biggest percentage loss since the Dow's creation in 1896. This crash is considered a "mini-crash" because the percentage loss was relatively small compared to some other notable crashes. After the crash, the markets still remained positive for 1997, but the "mini-crash" may be considered as the beginning of the end of the 1990s economic boom in the United States and Canada, as both consumer confidence and economic growth were mildly reduced during the winter of 1997–1998, and when both returned to pre-October levels, they began to grow at an even slower pace than before the crash.

<i>Closing Bell</i> American TV program on CNBC

Closing Bell can refer to two CNBC programs: the original Closing Bell on CNBC and European Closing Bell on CNBC Europe.

<span class="mw-page-title-main">Extended-hours trading</span> Stock trading outside of trading hours

Extended-hours trading is stock trading that happens either before or after the trading day of a stock exchange, i.e., pre-market trading or after-hours trading.

<span class="mw-page-title-main">Christmas and holiday season</span> Christmas and surrounding holiday period

The Christmas season or the festive season is an annual period recognized in many Western and other countries that is generally considered to run from late November to early January. It is defined as incorporating at least Christmas Day, New Year's Day, and sometimes various other holidays and festivals. It also is associated with a period of shopping which comprises a peak season for the retail sector and a period of sales at the end of the season. Christmas window displays and Christmas tree lighting ceremonies when trees decorated with ornaments and light bulbs are illuminated are traditions in many areas.

A trading halt occurs in the U.S. when a stock exchange stops trading on a specific security for a certain time period. The halt, which can happen a few times a day per security if FINRA deems it, usually lasts for one hour, but is not limited to that. Trading halts can happen any time of day. The listed company is supposed to call the exchange where it is listed, 10 minutes prior to any material news that they are releasing, in order for the exchange to halt the stock before the news is released. The first 5 minutes of a halt is for "news pending" before any information is released that could affect a stock significantly, also known as the "5 minute window".

<span class="mw-page-title-main">Holidays with paid time off in the United States</span>

In the United States there are a number of observed holidays where employees receive paid time off. The labor force in the United States comprises about 62% of the general population. In the United States, 97% of the private sector businesses determine what days this sector of the population gets paid time off, according to a study by the Society for Human Resource Management. The following holidays are observed by the majority of US businesses with paid time off: New Year's Day, New Year's Eve, Memorial Day, Independence Day, Labor Day, Thanksgiving, the day after known as Black Friday, Christmas Eve and Christmas. There are also numerous holidays on the state and local level that are observed to varying degrees.

References

  1. "NYSE: Holidays and Trading Hours". www.nyse.com.
  2. "Rule Change to Make Juneteenth National Independence Day a Holiday of the Exchange" (PDF). SEC.gov.
  3. "NASDAQ Stock Market Hours – Remote Prop Trading". trader2b.com. Retrieved 2017-04-13.