What Is Overnight Trading?

Overnight trading refers to trades that are placed after an exchange’s close and before its open. Overnight trading hours can vary based on the type of exchange on which an investor seeks to conduct trades.

Overnight trading is an extension of after-hours trading (also known as extended-hours trading). Not all markets have overnight trading.

Key Takeaways :-

🖲️. Overnight trading is trading that takes place outside of the normal trading hours of the primary exchange on which an asset is listed, as well as outside of pre-market and after-hours trading.

🖲️. Brokers of U.S. stocks that allow overnight trading may extend their after-hours trading session from 8 p.m. ET through the opening of the next day's pre-market trading or the normal opening time for the exchange.

🖲️. The forex market remains largely open all week because trading is facilitated by banks and businesses around the globe. There is no formal overnight trading in the forex market because the market is always open.

🖲️. Bonds have extended trading hours, and extended trading also applies to stocks between 4 a.m. and 9:30 a.m. ET (pre-market trading before the exchanges open), and between 4 p.m. (when the exchanges close) and 8 p.m.