Trading session
Family VII · Market & styles
Not to be confused with asian trading session, london trading session, new york trading session.
Trading session is the official period during which a market or exchange accepts and executes orders. It is set by the venue and may vary by asset class, with some markets operating continuous sessions and others using discrete opening and closing auctions. Trading outside these hours occurs in separate sessions or not at all.[1]
Session structure and hours
A trading session typically includes an opening auction, a continuous trading phase, and a closing auction. The exact hours and phases are set by the exchange and can differ by product. For example, many equity markets in the United States operate a regular session from 09:30 to 16:00 Eastern Time, while futures and forex markets often run nearly 24 hours across multiple geographic sessions. Pre-market and post-market sessions may exist but usually have different rules and liquidity.
Worked example: session hours and order execution
Consider a trader who wants to buy 100 shares of a stock listed on an exchange with a regular session from 09:30 to 16:00 ET. The order is placed at 10:00 ET and executed at the prevailing market price.
If the same order were placed at 17:00 ET, it would not execute in the regular session; it might be routed to an after-hours session with different liquidity and price behavior.
Variation across markets
Trading session hours and rules vary by exchange, country, and asset class. Some markets have a single continuous session, while others have a lunch break. Regulatory requirements for order handling and price limits may also differ between sessions. Traders should consult the specific exchange or venue for exact session times and conditions.
Often confused with
- asian trading session
- The asian trading session is a specific geographic trading period covering major Asian financial centres such as Tokyo, Hong Kong, and Singapore, whereas a trading session is any designated market period; the visible sign is the reference to Asian markets or local times like JST or HKT.
- london trading session
- The london trading session is the period when London-based markets are open, overlapping with European and part of the US session, while a trading session is a generic term for any market's operating hours; the visible sign is the mention of London or GMT/BST times.
- new york trading session
- The new york trading session is the period when New York markets are open, typically from 09:30 to 16:00 ET, whereas a trading session can refer to any market's hours; the visible sign is the reference to New York or Eastern Time.
See also
References
- ↑ Trading hours published by the exchanges and venues concerned. Session boundaries shift with daylight saving in each region and are not the same all year.