![]() ![]() You can also buy and sell indices on the weekend if you want to hedge a weekday position. When buying and selling indices with us, you can decide whether to trade at the live price (called the spot) or the futures price. Outside regular hours, our prices are based on futures and the movements of other related markets. With us, you can trade US stock indices 24-hours a day from 11pm Sunday until 10pm Friday (UK time). When you see an index price quoted outside of its exchange’s opening times, you’re often seeing its futures price. These contracts are bought and sold on futures exchanges, which typically have longer hours than stock exchanges. ![]() The majority of index trading, though, is based on the prices of futures contracts – prices agreed today for a trade at a set date in the future. The S&P 500 and Dow Jones track the prices of stocks listed on both the NYSE and the NASDAQ, while the NASDAQ 100 is comprised solely of stocks listed on the NASDAQ. All three major stock indices in the US – the Dow Jones, S&P 500 and the NASDAQ 100 – follow the same times as the NYSE and the NASDAQ. Here’s a breakdown of when they fall over the next three years:Ī stock index is a calculation of the price movements of a group of shares, so will typically only be open when the relevant exchanges are open. There are typically nine days each year when US exchanges are closed, plus two when they close early. In addition to sharing the same opening times, the NYSE and the NASDAQ have the same holidays. You’ll also benefit from low fees with $0 commission on US shares, 2 and an FX conversion fee of just 0.5%. With us, however, you can access extended hours on over 80 US shares, enabling you to trade from 9am to 1am Monday to Thursday, and 9am to 10pm on Friday (UK time). So if you’re looking to buy and sell US shares in the UK, you’d typically only be able to do so between 2.30pm to 9pm (UK time) from Monday to Friday. Most brokers and trading providers will follow each exchange’s opening times. So buying and selling takes place right through from the opening bell at 9.30am to the closing bell at 4pm. Unlike many stock exchanges around the world – especially in Asia – neither the NYSE or the NASDAQ closes for a lunch break. Both follow the same opening times, which you can see listed in the table above. It’s exactly what you would expect given the advent of easily and inexpensively traded exchange-traded funds benchmarked to the S&P 500 (or other broad-market benchmarks).There are two stock exchanges located in the US: the NYSE and the NASDAQ. This is not an accident, as I’ve discussed in previous columns. In fact, the pattern shown in the table would be even more pronounced if I were to have focused only on the past two or three decades. You might worry that the story told by this chart is skewed by experience many decades ago and is not as relevant to today’s market. Moreover, none of the differences reported in this chart is significant at the 95% confidence level that statisticians often use when determining if a pattern is genuine. As you can see from the table below, the S&P 500’s average return in the wake of such days was slightly better than on all other days. I focused in particular on all days on which the index first dropped below its 200-day moving average. To show this, I analyzed the S&P 500 (or its predecessor index) back to the mid-1920s. stock market historically has not performed more poorly after dropping below the 200-day moving average than it does at any other time. ![]() The historical record does not support this bearish interpretation. ![]()
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