You can still place stock, ETF, or crypto orders when the markets are closed.
Stock trading is traditionally limited to weekdays, but with advancements in technology and extended-hours trading, the landscape is changing. For those looking to trade outside of the standard market hours, there are options available. In this article, we’ll explore when you can trade, the benefits of weekend and extended-hours trading, and important factors to consider.
Market Hours: What Are the Regular Trading Times?
In the U.S., the stock market typically operates from 9:30 AM to 4:00 PM ET, Monday through Friday, excluding holidays. These are the official hours when most trading activity takes place. However, thanks to platforms like PFD Markets and other brokerage firms offering extended-hours trading, investors can now trade before the market opens and after it closes.
Extended-hours trading on PFD Markets starts from 8 PM ET on Sunday and continues until 8 PM ET on Friday. This window includes pre-market and after-market sessions, giving traders more flexibility to react to global news and events. Trades placed outside these times will be queued and processed when the regular market opens.
Trading Crypto 24/7: Is It Possible?
Yes, it is! Unlike the stock market, cryptocurrencies operate continuously, 24/7. On platforms like PFD Markets Crypto, users can trade digital assets any time of day, even on weekends. This always-open feature provides more opportunities to capitalize on the volatility of the crypto market.
However, it’s important to note that PFD Markets may schedule maintenance windows occasionally, affecting the ability to place or execute trades. Users are usually notified within the app when maintenance is scheduled to avoid surprises during trading.
Why Consider Trading During the Weekend?
Though weekend stock trading isn’t widely available yet, extended-hours trading offers similar advantages, allowing investors to capture opportunities that arise outside normal hours. Here are two key reasons why some traders may prefer trading during these non-standard times:
- Earnings Announcements: Companies frequently release their quarterly earnings after the market closes. Depending on the results, stock prices can experience significant fluctuations. Extended-hours trading lets you act on these earnings reports without waiting for the market to reopen.
- Foreign Market Activity: Foreign markets, such as those in Asia and Europe, are open while the U.S. markets are closed. Events and trading activity in these international markets can influence U.S. stock prices. Extended-hours trading gives investors a chance to react to these global developments before the regular market hours.
Risks of Extended-Hours Trading
While extended-hours trading offers more flexibility, it also comes with added risks that investors should be aware of. Here are some key risk factors:
- Higher Volatility: Volatility refers to the degree of price fluctuations in securities. During extended hours, price swings may be larger than usual due to lower trading volumes. This can create more dramatic price movements and greater risk.
- News Announcements: Important financial news and company updates are often released after regular trading hours. While extended-hours trading allows you to react to these announcements, the combination of reduced liquidity and increased volatility can lead to exaggerated price movements, sometimes making them unsustainable.
For a deeper understanding of the risks, it’s important to review Risk Factors to Consider in Extended-Hours Trading before participating in off-hours trades.
