Can You Trade Stocks on the Weekends and What Alternatives Exist?

The New York stock exchange usually comes off to most beginner investors as an exclusive club reserved for the elite and open for business at a specific and convoluted time. While it is true that day trading on the stock market is time sensitive and resembles moreso a 9-to-5 job rather than an activity available 24/7, such as the ones we’re accustomed to online, it’s much more inviting that it seems. It is however limited to that timeframe and remains closed during the weekends. We’ll look into why below.

There are many alternatives available for traders looking to trade during the weekend and after-hours, including other stock exchanges and alternative, less-traditional trading avenues.

In this article we’ll explore these options and discuss when the N.Y. stock market opens, explain what “after-hours” trading means and provide some options to beginner investors who wish to capitalize on trading possibilities throughout the entire week.

N.Y. Stock Market Trading Hours

The New York Stock Exchange (NYSE), the world’s largest stock exchange, is open from 9:30 a.m. to 4.00 p.m. Eastern Time, Monday through Friday and this is when the biggest trades in the world occur.

Some brokerages offer the option to trade pre-market and after-hours which allow traders to capitalize on potential after-hour news or to grab opportunities right before trading opens. These extended sessions generally run on workdays:

• Pre-market: 4:00 a.m. to 9:30 a.m. ET
  
  
• After-hours: 4:00 p.m. to 8:00 p.m. ET
  
  

After 8:00 p.m. ET on Fridays, traditional U.S. stock exchanges close until Monday morning. That means that all trading through the NYSE is unavailable over the weekend.

Why Can’t You Trade Stocks on the NYSE on Weekends?

Traditional trading on stock exchanges follows the usual 9-to-5 working hours format. This format comes with many benefits that help define periods of opportunity and keep the day trading aspect of the stock exchange. Benefits such as:

1. Concentrated liquidity and volume: Governing supply and demand, the day-trading format of stock exchanges allows for concentrated trading where all stockholders are present and participating in the market. Outside of trading hours, fewer people trade which can lead to volatile price swings and less accurate stock pricing.
   
   
2. Institutional investors and market makers: Driving most of the activity on the stock market, institutional investors trade during standard business hours. These traders provide the volume and market stability expected on the NYSE as they trade on behalf of millions of investors, contributing during trading hours.
   
   
3. Logistics: Institutions such as banks and regulatory bodies that support the market infrastructure greatly also operate on a weekday schedule. If they were to start processing trades during the weekend, our entire business world would need to be logistically restructured.

Trading in Other Countries During the Weekend - Is it Viable?

Day trading is primarily a weekday activity in all countries due to the same reasons listed above. Given that stock markets operate based on local timezones, most stock exchanges stay open 9-to-5 in their local time, which means you could trade “after-hours” in relation to ET time.

• The London Stock Exchange trades Monday to Friday, 8:00 a.m. to 4:30 p.m. local time (GMT+1).
  
  
• The Tokyo Stock Exchange follows weekday hours, from 9:00 a.m. to 3:00 p.m. local time (GMT+9).

What Alternatives Exist for Weekend Traders

While traditional stock exchanges remain closed during the weekends that doesn’t mean that day-trading is off the table. In-fact many popular markets remain open 24/7 such as crypto.

1. Cryptocurrency Trading

Digital assets functioning on decentralized exchanges are available 24/7. These include popular cryptocurrencies like Bitcoin and Ethereum as well as alt-coins. 

Day trading crypto is becoming mainstream with many institutional investors working with crypto as part of their portfolio, with no time restrictions and an international market that reacts to market conditions instantly.

Trading crypto is, however, more volatile than traditional trading and requires a separate skill set and knowledge of the markets. The risks involved may not be suited to all investors however the option is there and the market is becoming increasingly popular all over the world.

2. Futures Trading

Futures contracts - agreements to buy or sell assets at a set future date and price - are something that’s available for trading 24/7. Most online platforms allow futures trading and that allows investors to capitalize on market conditions by ‘locking in’ prices and even automating selling as soon as the market opens.

Futures can be complex for beginners and they tend to be riskier than traditional stock trading but are an available option for those looking to trade on the weekend.

3. Forex (Foreign Exchange) Trading

Global currencies are traded 24 hours a day from Sunday at 5:00 p.m. ET to Friday at 5:00 p.m. ET on the forex market. While it’s not open during the entire weekend, it is on Sunday evenings, giving you a window of opportunity if you’re eager to get trading on the weekend.

Forex is quite an accessible market for beginners and can be a great entry point for new investors with more flexible hours, high volume and international market reach.

Where Can You Trade on the Weekends?

While options remain limited when it comes to traditional day trading, modern markets such as crypto provide an alternative for weekend investors. Most modern online platforms offer access to crypto markets as well as traditional stock exchanges.

It’s important to choose a platform with the most options as you may be in a position to trade during weekdays in the future and would like to capitalize on new opportunities without having to switch platforms all the time.

We’ve created curated lists of the best online stock brokers for beginners as well as the best forex brokers, binary options brokers and many more on our website, in case you’re looking for the right platform to suit your investment style and schedule.

Bottom Line

While it’s not currently possible to trade on the world’s biggest stock exchanges, such as the NYSE, outside of working hours, you can include international markets, alternative markets like crypto and instruments like futures if you’re looking to trade on the weekends.

This, of course, only relates to short-term day trading where investors hold positions for only a few hours, minutes or even seconds. While this is what we associate with the stock exchange, it’s not the only way to trade. 

Holding positions for longer is still processed through the same mechanisms and unless you’re set on day trading as the only way to trade, looking into longer positions may be a less stressful and potentially better thought-out trading avenue for you if you can’t regularly day trade during weekdays.

Investing isn’t necessarily a short-term pursuit, if viewed with a macro lens, weekend downtime is usually a time for strategic overviews and preparation for the week ahead.