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        How Does the US Market Work

        Views 8822022.11.09

        Trading Rules in the US stock market

        It is necessary to understand common trading rules before entering the US stock market.

        1. What are the trading hours of US stocks?

        US stocks are normally traded between 9:30 a.m. and 4.00 p.m. on Monday to Friday (ET).

        Summer Time (March-November): 9:30 p.m.-4.00 a.m. (SGT)

        Winter time (November-March): 10.30 p.m.-5.00 a.m. (SGT)

        Summer Time (March-November): 0.30 a.m.-7.00 a.m. (Sydney time)

        Winter time (November-March): 1.30 a.m.-8.00 a.m. (Sydney time)

        Apart from normal trading hours, US stocks also have pre-market and after-hours trading sessions.

        Pre-market trading hours: 4:00 a.m. -9:30 a.m. (ET)

        Summer Time: 4.00 p.m.-9.30 p.m. (SGT)

        Winter time: 5.00 p.m.-10.30 p.m. (SGT)

        Summer Time: 7.00 p.m.-0.30 a.m. next day (Sydney time)

        Winter time: 8.00 p.m.-1.30 a.m. next day (Sydney time)

        U.S. stock after-hours trading session: 4:00 p.m.-8.00 p.m. (ET)

        Summer Time: 4.00 a.m.-8:00 a.m. (SGT)

        Winter time: 5.00 a.m.-9:00 a.m. (SGT)

        Summer Time: 7.00 a.m.-11:00 a.m. (Sydney time)

        Winter time: 8.00 a.m.-12:00 a.m. (Sydney time)

        But it's worth noting that pre-market and after-hours trading liquidity is generally lower. Moreover, listed companies usually announce major news during the pre-market or after-market hours, which may cause their stock prices to fluctuate.

        2.  Is there a limit on the stock price?

        Securities traded on the US stock market do not have price limits. A stock may rise 20% or more in a day, or it may fall 20% or more in a day. Investors need to manage risks based on their situation.

        3. What is the trading model?

        The US stock market adopts the intraday trading mode. The stocks or options bought on the same day can be sold on the same day.

        4. What is the minimum number of trading shares? And what's the smallest price change?

        The traditional minimum number of trading shares on the US stock market is one share.

        The minimum tick size for stocks over $1.00 is $0.01 while stocks under $1.00 can be quoted in increments of $0.0001.

        5. How are securities settled?

        The settlement cycle for US stock market is T+2. This means the settlement of securities occurs two business days after the order date (T). T+2 marks the official transfer of securities to buyers' accounts and cash to sellers' accounts by brokers and clearing institutions. The cash earned from selling the shares can only be withdrawn after the settlement. 

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        This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.

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