Why is the stock market not trading 24 7
Exchange: trading hours that you should know
All over the world, trading takes place almost around the clock on various stock exchanges on weekdays - a market is always open somewhere.
However, the individual stock exchanges have different trading hours. These are based on the main business hours in your country.
Trading hours on the stock exchanges
Overlaps between different stock exchanges are of course possible. It is also crucial whether stocks, bonds, commodities or other financial products should change hands.
Because there can be different trading hours for different asset classes. Also on the same stock exchange.
Always following the sun - Stock trading from Asia to Europe to America
At midnight our time, stock exchange trading starts on the Australian Stock Exchange in Sydney. While most people in this country are still asleep, the stock exchanges in Tokyo, Hong Kong and Singapore open.
When trading on the European stock exchanges in Frankfurt, London, Paris, Milan, Madrid, Vienna or Zurich begins at 9:00 a.m., Sydney, Tokyo and, during the winter, Hong Kong are already closed again, while Singapore is close to it.
At 3:30 p.m. our time, trading begins on Wall Street, the largest and most important stock exchange in the world.
The trading hours in Europe and the USA overlap for two hours, then the USA continues on its own until 10 p.m. of our time.
It is important for investors to know the different trading hours. Because they help determine what is happening on the market: For example, the course of share trading on the Asian stock exchanges also influences the prices in Europe, especially at the opening.
European trade gets new impetus in the afternoon when the Americans start too.
If, on the other hand, there are news that influence prices, such as business figures from leading companies, major political events or even reports of catastrophes after the stock market closes in Europe, the share prices in this country can no longer react.
You then process these impulses together with the reactions that have taken place on the American and Asian stock markets with a time delay the next day.
The more trades, the higher sales and the tighter spreads
The vast majority of stocks and bonds on the Frankfurt Stock Exchange are traded between 9 a.m. and 5.30 p.m. on the fully electronic computer platform Xetra.
That was not always the case: a good 20 years ago, trading in Frankfurt took place between 10.30 a.m. and 1.30 p.m., and from 2000 to 2003 even from 9 a.m. to 8 p.m. - the evening hours were not worth it because of the low sales.
Stock trading is still possible today until 8 p.m. on the regional stock exchanges in Hamburg, Hanover, Berlin, Düsseldorf, Stuttgart and Munich. However, sales there are also low.
Basically, the more a security is bought and sold, the higher the turnover.
If a value is traded at the same time on different exchanges whose trading hours overlap, this also has a positive effect on sales.
Market players benefit from it. This is because high volumes make buying and selling easier and ensure narrow margins - so-called spreads - between the buying and selling prices of a security.
Thin trading volumes, on the other hand, lead to wide spreads and make transactions difficult.
Over-the-counter trading as an alternative
If you want to sell or buy shares after the close of trading, you can switch to over-the-counter trading. He then trades with what is known as a market maker, who gives the bid and ask prices for an individual security.
The customer decides whether he wants to close the deal on these terms or not.
The first half of 2020 is over and it was a real rollercoaster ride on the stock market. But somehow everything looks worse than it actually is on the stock exchanges. That… ›read more
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