Currency Zone

Can you buy and sell stocks over the weekend

The usual benefits even in an unusual timing

The stock market usually operates on five days a week basis where the timing is 9 am -5 pm. But all thanks to its growing popularity and technological development, now you can be a part-time trader as well. Your weekends are no more sluggish because the stock exchanges are here, helping to elicit your usual enthusiasm.

Electronic Communication Networks (ECN) helps investors in trading at the pre-market and post-market hours. Stock exchanges have a business base across the countries. This helps to contribute to business at any time of the day. Especially if we consider the stock market in the Middle East, and best index funds uk, you are allowed to do full-time trade even on Saturday. These together contribute to the huge business at wee hours and on Saturdays and Sundays.

Let’s look at the different choices of buying and selling stocks over the weekend

·         Trading at Wee Hours to Benefit the Most

Many brokers offer services after the usual hours for the clients. There are specific pre-market and post-market hours assigned for the stock exchange business. It is between 4 am to 9 am and 4 pm to 8 pm respectively. This is beneficial to a great extent. You can utilise the flexible market rates for your advantage. Moreover, decisions come quite swiftly at these hours. But you also have to keep another thing in mind.

Electronic Communication Networks allow the one-way transaction. Either you can buy or sell the shares. In comparison to the actual exchange, the ECN offers a lower volume of stocks. In such a case, it may not be always possible for the buyer and seller to agree on a specific price or condition. The primary condition to strike a deal is that the seller’s bid must fulfill the buyer’s demand.

·         Using the Pre Market and Post Market Hours to Trade

The stock market has a specific timing allotted for business purposes. There is heavy traffic during the usual hours. So if traders think of choosing some other times then they have the pre-market and aftermarket hours available.

It is with the help of ECN that stock exchanges operate at hours other than the usual. Initially, it was done by institutional investors only. But eventually, with the technological revolution in the stock market, now, anyone can strike the right deal with buying and selling stocks.

There are plenty of mainstream share brokers and service providers. Some of them tend to render trading services after the usual hours. Though some choose to provide slower network services or limited access, most of them contribute to the expanse of the business.

·         Middle Eastern Stock Market gives a Pass for Trading over Weekends

The biggest advantage in the stock market is that it is spread worldwide. Though there is a standardized version to benefit everyone, often few things work differently. This helps in expanding the business and spreading it more amongst the interested ones.

There are countries which neither start nor end the weeks on a Sunday. Most of the countries in the Middle East follow the Islamic calendar. According to that, their week begins on a Friday thus allowing them to conduct the services from Saturday to Thursday.

Dubai Financial Market lays a huge opportunity for the investors to invest on weekends, quite opposed to that of the New York Stock Exchange. For conducting a hassle-free business over the weekends you just need a good and reliable broker. Some concern like IB i.e. Interactive Brokers might help to seal some good deals.

·         Different Time Zones Offering Different Business Prospects

Each country has a different time zone. In the US you might not be allowed to trade after 5 pm, according to the timings of the New York Stock Exchange. But you can trade with other countries located in different time zones.

The interested investors can take the help of an authentic site like World Time Zone or check the World clock to enquire about the markets which are open for trade. Time difference helps you to trade almost twenty-four hours if you can manage to do so.

Benefits of trading on odd hours or over weekends

·         Traffic Free trade – There is a lot of hue and cry in the usual hours. The stock market attracts a lot of investors and all of them are keen on increasing the money in the fastest possible way. This creates a rush and often the system ceases to function. You can choose the weekends and odd hours to avoid these issues.

·         Acquiring and Acting on new information – Investors can calmly act on new information coming their way. They get the information on the International market and can decide vividly. You can analyze a situation and can decide to either sell or buy the share. All these happen at a greater speed at these aftermarket hours than on the scheduled hours.

·         Offering Flexibility – The biggest advantage of post-market or pre-market investment is flexibility. It benefits both the professional and per time investors and traders to buy or sell shares. There might be a time crunch during the office hours, so flexibility helps you to juggle well.

There are certain disadvantages in trading in off-hours

·         High fluctuations of rates – Since the available options are lesser in numbers, there may be higher volatility in the prices of the shares.

·         Risk in execution – It may happen that your order does not get processed within the day because the ECN market lacks volume.

These can be overcome by choosing the right broker. Few important qualities in the broker are as follows:

·         One who has access globally

·         Offers you premier technology

·         Has the lowest cost structure for the services provided

Therefore buying and selling stocks over the weekend is not a big deal if you have the required resources and knowledge. Investors are getting inclined to such transactions more often now because of the advantages. As an investor, you must always choose the path of your convenience.

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