In investing, the trading day or regular trading hours (RTH) is the period that the stock exchange is open, contrary to extended trading hours (ETH).
It can also refer to the hours when the market is open. The term “trading day” can also refer to the actual process of buying and selling securities.
Trading Day on different markets
Trading days vary depending on the particular market. In most markets, trading days are typically Monday through Friday, except holidays. In most countries, the market is open from 9 AM to 5 PM local time on weekdays.
The three major U.S. stock exchanges—the New York Stock Exchange (NYSE), the National Association of Securities Dealers (NASDAQ), and the American Stock Exchange (AMEX)—are open Monday through Friday from 9:30 AM to 4 PM EST.
However, numerous other markets worldwide are open at different times (and on different days of the week).
For example, the Tokyo Stock Exchange is open Monday through Friday from 9:00 AM to 3:00 PM JST (Japan Standard Time). And in Australia, it opens at 10 AM and closes at 4 PM local time.
Furthermore, individuals may now trade remotely using electronic platforms, although they can only do so during the exchange's open hours and time zone.
What Happens At The End of The Day?
When the market closes (end-of-day), it marks the end of a trading day, and all trades are finalized. Traders will assess their performance from the day and make any necessary adjustments. After the market closes, traders can no longer buy or sell stocks until the following day.
However, other factors can cause a trading day to halt trading. For example, if a significant news event or a holiday occurs, the stock market may close early or not open. Also, if the market is experiencing extreme volatility, it may be halted with a “trading curb or circuit breaker” to prevent further losses.
Trading Days In A Year
The number of trading days in a year varies depending on the market. For example, the NYSE and NASDAQ usually are open for about 252 trading days per year. However, other markets are open for more or fewer days.
There are several factors that can affect how many days in a year the stock exchange is open. One major factor is the holiday schedule. Most stock exchanges will close for major holidays like Christmas and New Year's, as well as for other local holidays. The time the exchange is closed can vary, depending on the country. For example, the Toronto Stock Exchange is closed for Canadian Thanksgiving but not American Thanksgiving.
Another factor that can affect the schedule is daylight saving time. Some exchanges will change their hours to accommodate daylight saving time, while others will not.
The stock exchange is also usually closed on weekends. However, there are some exceptions. For example, the Saudi Stock Exchange is open on Sundays alongside many other Middle Eastern stock exchanges, which may be open on Saturdays or Sundays.
The number of trading days in a year can also be affected by special events. For example, the stock exchange may close early if there is a natural disaster or a political crisis.
In conclusion, the number of trading days in a year can vary depending on the country, the holiday schedule, daylight saving time, and special events. However, the stock exchange is typically open from Monday to Friday.