Overnight Trading
Categories: Trading
The stock market closes at 4 pm EST each trading session and doesn't open again until 9:30 am EST the next work day. However, stock prices don't just sit in suspended animation during that overnight period. Some trading still goes on, taking place on electronic exchanges. Shares change hands on these online marketplaces, moving prices around. Meanwhile, lots of news gets released during that period. In fact, most information about companies (like earnings reports or merger announcements) come out either in the morning, before the start of trading, or in the afternoon, after the close of the session.
Meanwhile, stuff continues to happen throughout the world while folks in the U.S. are snoring. Events in Tokyo, or Moscow, or Berlin, or Paris, or Ulaanbaatar can influence the overnight trading.
