What happens when a market opens and closes?

The Forex market is open 24 hours a day, five and a half days a week, because of different interbank sessions across the globe.

Forex:

The Forex market is open 24 hours a day, five and a half days a week, because of different interbank sessions across the globe.

Here at EightCap, Forex markets close each Saturday at 9 am at the end of the U.S. session, before reopening Monday morning at 9 o’clock (Australian daylight saving times). Other brokers may operate at different open and close times, because of their headquarters’ time zone or Greenwich Mean Time (GMT). During the 48-hour close, no trades are taken or performed by retail traders. Only central banks and related financial institutions have access to currency markets after-hours. As a result, when the market reopens to retail traders on Monday, there can be a new price point for the currency. This is known as a ‘weekend gap’. A gap risk can also be caused by a large amount of orders taken before the market reopens.

Indices:

When it comes to equities, stocks and shares can only be traded between the opening bell and closing bell of the exchange it’s listed on. Some exchanges allow pre-opening or after-hours trading for a short-period of time.

On the Australian Stock Exchange (ASX), pre-opening takes place between 7:00 am-10:00 am. During this time brokers can enter orders into ASX trade in preparation for the market opening. Investors can also enter orders online, but there is no trading going on. After the market closes between 4:00 pm-4:10 pm, trading stops, and brokers can enter, change or cancel orders in preparation for the market closing. EightCap’s stock index CFDs follow the share market during the day and follow the futures market in the night session, making it a 24/5 market. Some indices do take breaks during the day like the AUS200. It opens at 9:50 am and runs until 4:30 pm before the night session opens at 5:10 pm and runs till 7:00 am AEDT.

Buying or selling of a stock can be influenced by earnings reports or financial news involving the company. For example, if there’s a positive financial announcement, there may be an increase in demand for the security. A stock’s opening price may differ from its close in the previous session because of orders placed in after-hours trading.

For more information on exact trading hours, please feel free to contact us.

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