24/5 trading guide: Trade U.S. markets around the clock

Unlike regular market hours, 24/5 trading gives you continuous (round-the-clock) access to trade markets all week from Sunday 20:00 ET to Friday 20:00 ET (Monday 00:00 UTC to Saturday 00:00 UTC).

What you’ll learn

• What is a trading session?
• What is an electronic market?
• What is 24/5 trading?
• The difference between 24/5 trading and regular trading hours
• The benefits of 24/5 trading
• The risks of 24/5 trading
• How does 24/5 CFD trading work?
• What can you trade 24/5 on Plus500?
• Key takeaways
• FAQ

Key terminology

What is a trading session?

A trading session refers to the specific hours during which an asset or market is actively traded. These hours vary depending on the type and location of the market. For example, the U.S. trading session is primarily defined by the New York Stock Exchange (NYSE), which operates from 09:30 to 16:00. EST. However, other markets like Bonds, Futures, and Forex have different trading sessions, influenced by the nature of the asset and regional factors.

Globally, trading sessions are categorised by regions, including the Asian, European, and North American sessions. Each has its own distinct hours, reflecting the working hours of major financial centres in those regions. It's crucial for traders to understand the specific trading hours of the assets they trade, as these affect liquidity, volatility, and the potential for market movements during those sessions.

What is an electronic market?

​​Electronic markets are platforms that enable the trading of Stocks, ETFs, and other securities through digital networks, eliminating the need for physical trading floors. Unlike traditional markets where buyers and sellers mainly interact in person, electronic markets connect participants via high-speed computers and modern communication systems. This setup allows transactions to occur efficiently, regardless of the participants' locations.

One of the earliest and most prominent examples of an electronic market is the Nasdaq stock market. The Nasdaq, launched in the 1970s, operates entirely online, linking investors, brokers, and dealers to facilitate the buying and selling of securities. With the advent of the internet, electronic markets have become increasingly accessible, allowing ordinary investors to engage in online trading through brokerage platforms. These platforms offer features such as real-time price updates, portfolio tracking, and instant trade execution, while reducing costs compared to traditional brokerage services.

The rise of electronic markets has not only revolutionised how trades are executed but also introduced new trading behaviours, such as day trading. While this form of trading can be profitable, it comes with significant risks and tax implications. Overall, electronic markets have expanded access to trading, making it easier for individuals to participate in the financial markets from virtually anywhere.

What is 24/5 trading?

24/5 trading refers to the ability to trade financial instruments continuously during the trading week before and after normal trading hours, from Sunday 20:00 ET through Friday 20:00 ET (Monday 00:00 UTC through Saturday 00:00 UTC).

Unlike traditional extended-hours trading, which is limited to pre-market sessions (04:00 to 09:30 ET) and after-hours sessions (typically 16:00 to 20:00 ET), 24/5 trading removes these gaps and provides near-round-the-clock access during weekdays.

Beyond the pre-market sessions (04:00 - 09:30 ET), the normal market hours (09:30 -16:00 ET) and the after-hours sessions (16:00 - 20:00 ET), with 24/5 trading, there is the ability to trade also during overnight sessions between 20:00 and 04:00 ET

This evolution reflects increasing demand for flexibility, allowing traders to respond instantly to global developments rather than waiting for markets to reopen.

Comparison chart: 24/5 trading vs regular trading hours

Key difference

Regular trading hours are confined to the official U.S. market session, while 24/5 trading extends access across nearly the entire trading week. This allows traders to act on market-moving events as they happen, rather than waiting for the next market open.

The benefits of 24/5 CFD trading

Stay responsive when markets move

Financial markets don’t pause when traditional exchanges close. Key developments, such as global news, earnings announcements, and economic data releases, often happen outside standard U.S. trading hours. With 24/5 CFD trading, you can react instantly rather than waiting for the next session.

Trade on your own terms

Whether you’re in a different time zone or balancing trading with a busy schedule, extended trading hours give you the freedom to engage with the markets when it suits you, not when the market dictates.

Unlock more potential opportunities

Around-the-clock access means exposure to a broader range of market conditions. From overnight volatility to early momentum shifts, 24/5 trading can help you identify and act on opportunities that may otherwise be missed.

What are the risks of 24/5 trading?

Trading outside traditional market hours may involve additional risks:

• Lower liquidity - Lower trading volumes for certain markets increase difficulty in executing some trades and may impact the trade price
• Increased price volatility - You may experience severe price fluctuations when trading out-of-hours due to lower liquidity
• Wider spreads - Less trading activity can result in a wider spread between the bid and asking price

Moreover, when trading with Plus500, you need to be aware of the risk of being closed out pre- and post-market. This is especially true of extended-hours share traders who may be closed out by margin calls or stops triggered. This would expose traders to gapping if no guaranteed stop is in place.

How does 24/5 CFD trading work?

24/5 CFD trading is seamlessly integrated into the Plus500 platform:

• No separate trading mode or flow is required
• Supported instruments are available continuously during the trading week
• Pricing, margin, and risk management are adjusted to reflect extended availability

Execution may be influenced by factors such as liquidity and volatility, which can differ outside peak market hours.

25/4 trading with Plus500: What CFDs can you trade 24/5 on Plus500?

Plus500 is gradually expanding its 24/5 CFD offering across multiple asset classes, including:

• U.S. Share CFDs (selected instruments, expanding list)
• Major Indices
• Forex pairs
• Commodities

Supported instruments are clearly marked within the platform. Explore 24/5 CFD trading with Plus500 here.

Important considerations

• Not all instruments are available for 24/5 trading
• Trading conditions may vary depending on the asset and region
• Always check instrument-specific trading hours in the platform

Key takeaways:

• 24/5 trading enables continuous access to selected markets from Sunday 20:00 ET to Friday 20:00 ET (Monday 00:00 UTC to Saturday 00:00 UTC).
• It goes beyond traditional extended-hours trading by removing gaps between sessions, enabling the overnight trading session
• Traders can respond in real time to global news, earnings releases, and economic events
• Availability currently includes selected U.S. Stocks, with ongoing expansion to additional instruments
• Trading conditions such as liquidity, volatility, and spreads may vary outside standard market hours
• When trading extended hours, positions may be closed out by margin calls or triggered stops, particularly pre-and post-market. Without a guaranteed stop in place, this can expose you to gapping risk.

What Is After-Hours Trading?

After-hours trading refers to the practice of buying and selling securities outside of the standard trading hours set by major U.S. exchanges. Typically, these exchanges operate from 9:30 a.m. to 4:00 p.m. Eastern Time, but after-hours trading allows investors to continue trading from 4:00 p.m. to 6:00 p.m., with some sessions extending to 8:00 p.m. This extended trading occurs via ECNs, which enable traders to execute orders without needing to be physically present on the trading floor. Originally, after-hours trading was primarily available to large institutional investors, but the introduction of ECNs in the 1990s opened the door for individual retail investors to participate as well.

After-Hours Trading Benefits

After-hours trading offers several key potential advantages for investors. One of the primary benefits is the convenience of being able to react to news and events that occur after the regular market closes. For instance, a company might release its earnings report in the evening, and after-hours trading allows investors to respond immediately rather than waiting for the next day’s market open. This ability to act on fresh information can create opportunities for advantageous pricing, especially if a stock's price temporarily fluctuates due to new developments. Additionally, after-hours trading enables investors to strategise based on global events, such as political changes or international market movements, that might impact stock prices before the next trading session begins.

After-Hours Trading Risks

Despite its advantages, after-hours trading carries notable risks. One significant concern is the lack of liquidity, as fewer trades are made during these extended hours compared to the regular session. This can lead to wider bid-ask spreads, making it harder to buy or sell stocks at desired prices. Furthermore, individual investors often find themselves at a disadvantage, competing against large institutional investors with greater resources and professional trading expertise. Another risk is the increased price volatility that can occur due to lower trading volumes. Prices may fluctuate more dramatically after hours, leading to potentially unfavourable outcomes for those not prepared to manage the risks associated with these market conditions.

How Pre-Market and After-Hours Trading Affect Stock Prices

Pre-market and after-hours trading can significantly influence stock prices, often in ways that differ from regular trading hours. One key factor is the lower liquidity during these sessions, as fewer investors are active, which can lead to larger price swings with even small volumes of trades. The limited number of participants can result in wider bid-ask spreads, making it more challenging to buy or sell at favourable prices, and potentially causing more pronounced volatility.

Stock prices during extended-hours trading can also shift based on new information that becomes available outside of regular trading hours. For instance, if a company releases an earnings report or other significant news after the market closes, this information can prompt immediate reactions from traders in the after-hours session, driving prices up or down before the next day’s open. These price movements can set the tone for the upcoming trading day, as the stock may open at a different price compared to the previous day’s close.

Additionally, the behaviour of stock prices during pre-market and after-hours trading can provide insights into investor sentiment as traders respond to overnight developments or anticipate market reactions. These early price movements often carry over into the regular trading session, influencing the opening prices and potentially setting the momentum for the day.

If you’re ready to engage in after-hours trading with Plus500, you can open a CFD trading account.