US Stock Trading Time

The U.S. stock market is one of the largest, most active, and most influential markets in the world, attracting countless investors and traders. If you want to invest in U.S. stocks, then you need to understand the trading hours, rules and characteristics of U.S. stocks, and how to choose a suitable U.S. stock brokerage. This article will introduce these contents to you in detail, so that you can better grasp the investment opportunities in US stocks.

US Stock Trading Time

There are several stock exchanges in the United States, the main ones being the New York Stock Exchange (NYSE), the NASDAQ (NASDAQ) and the American Stock Exchange (AMEX). The opening and closing times of these three exchanges are basically the same. However, due to the implementation of summer time and winter time in the United States, the corresponding Taiwan time will change. Below we introduce the normal trading hours, pre-market and after-market trading hours and closing dates of U.S. stocks.

Normal Trading Time

The normal trading hours of the U.S. stock market are from Monday to Friday (9:30 am to 4:00 pm). The trading hours are uninterrupted and adopt continuous trading (compared to Hong Kong, China and Japan, which are significantly different) 12.

Since the United States implements daylight saving time and winter time, the corresponding Taiwan time will change. Daylight saving time starts on the second Sunday in March and ends on the first Sunday in November; winter saving time starts on the second Sunday in November and ends on the second Sunday in March of the following year. 34

Therefore, the corresponding Taiwan time is:

Daylight Saving Time: 9:30 pm to 4:00 am

Winter time: 10:30 pm to 5:00 am

Pre-market And Post-market Trading Time

In addition to normal trading sessions, U.S. stocks also have pre-market and after-market trading sessions, which are extended trading hours:

Pre-market trading hours: 4:00am–9:30am

After-hours trading time: 16:00–20:00 pm

The above time is based on Eastern Time 12.

The corresponding Taiwan time is:

Daylight Saving Time: 4:00pm–9:30pm (before the market opens), 4:00am–8:00am (after the market opens)

Winter time: 5:00pm–10:30pm (before the market opens), 5:00am–9:00am (after the market opens)

Note that pre-market and after-market trading can only be conducted via ECN (Electronic Trading Network). There are various trading risks in pre-market and after-market trading, such as: low liquidity, large price fluctuations, low trading volume, large bid-ask spreads, etc. If you want to trade during these two time periods, you need to pay attention to risks 5.

Closing Date

The U.S. stock market will be closed or closed early on some statutory holidays, especially important holidays in the United States. Therefore, investors should pay more attention to the arrangements for stock market holidays to avoid unnecessary losses. The following is a list of important U.S. holidays in 2023. The U.S. stock market will be closed on the following holidays.

Holiday

New Year's Day, January 2

January 16th Martin Luther King Jr. Day

Washington’s birthday, February 20

Good Friday, April 7

Memorial Day, May 29

June 19 National Independence Day

July 4th Independence Day

Labor Day, September 4th

Thanksgiving Day, November 23

Christmas Day, December 25

U.S. stock trading features

The U.S. stock market has some unique trading characteristics that investors need to understand and adapt to. Below we list several important features:

There are no price limits on U.S. stocks, and prices can fluctuate freely, so there may be sharp rises and falls.

U.S. stocks have a T+3 delivery rule, which means that it takes three trading days for the money after selling a stock to arrive, so you cannot use the selling money to buy stocks again.

There is a dividend tax issue on U.S. stocks, which means that if you hold stocks of U.S. listed companies, you need to pay 30% tax to the U.S. government when you distribute dividends, unless you are a country or region that has signed a tax treaty with the United States.

There is a phenomenon of laundering in the U.S. stock market, which means that some investors will sell losing stocks before the end of the year to reduce the income tax burden for the year, and then buy them back at the beginning of the year. This can lead to unusual price changes for some stocks at the end of the year and the beginning of the year.

Introduction to U.S. stock brokerages

If you want to invest in U.S. stocks, you need to choose a suitable U.S. stock brokerage. There are many types of U.S. stock brokerages, which can be divided into the following categories based on service models and charging methods:

Full-service brokerages: This type of brokerage provides a full range of services, including investment advice, financial planning, retirement planning, etc., but the fees are relatively high, usually based on commissions or fixed fees. This type of brokerage is suitable for investors who require professional guidance and management. Representative full-service securities firms include Morgan Stanley, Merrill Lynch, etc.