24-Hour Trading: What Investors Need to Know

Globalization, investor demand and advances in trading technology have gradually pushed the stock market beyond traditional hours over the years. The next frontier is widespread adoption of 24-hour trading – at least on weekdays. Momentum has been building, but the concept still has both cheerleaders and critics.

What Is 24-Hour Trading?

The Evolution of Extended Trading Hours

Regular trading hours for listed stocks are between 9:30 a.m. and 4 p.m. ET weekdays. Trading activity outside of those hours was once uncommon. But over the years, the number of exchanges has grown. And technology has become more robust, with a wider variety of trading systems and trading interfaces available to retail investors – especially through mobile apps.

The result? More activity outside of normal hours, known as pre-market and post-market (or after-hours) trading, which was once mostly limited to institutional investors and high-net-worth individuals. As of January 2025, extended hours trading accounted for more than 11% of all U.S. equity trading – more than double the amount in early 2019. The windows vary by market but Nasdaq, for example, offers pre-market trading from 4 to 9:30 a.m. ET and after-hours trading from 4 to 8 p.m. ET. During these extended hours, trading occurs through systems like ECNs (Electronic Communication Networks), which automatically match buy and sell orders.

More recently, some brokerages have begun offering trading access that goes a step further, attempting to fill the gap between regular and extended market hours. In October 2024, Charles Schwab announced an overnight trading pilot program, joining firms like Robinhood and Interactive Brokers in making trades available 24 hours a day (or close to it), five days a week. For any trading outside of normal market hours, however, each firm has its own rules and restrictions.

Are Exchanges Moving Toward 24-hour Trading?

While wider retail access has helped fuel interest in 24-hour trading, a pivotal development may come as more exchanges transition to a round-the-clock model – and new ones are introduced. Nasdaq expects to launch 24-hour, five-days-a-week trading on its flagship exchange in 2026, citing a surging global demand for U.S. equities. The New York Stock Exchange plans to extend weekday US equity trading to 22 hours a day on NYSE Arca, which is the top U.S. exchange for exchange-traded funds but also trades more than 11,000 securities. And the 24X National Exchange, a platform set to debut in the second half of 2025, aims to offer 23-hour trading on weekdays (with a one-hour pause each day).

Markets That Have Pioneered 24-Hour Trading

“Anytime” trading may be a burgeoning development for stocks, but other markets have helped influence the trend by operating round-the-clock for years or even decades.

Perhaps it’s not surprising that the 24-hour-trading drumbeat has coincided with the rise of cryptocurrency. Cryptocurrency markets are always open – 24 hours a day, seven days a week, 365 days a year. That’s because, unlike stocks or commodities, the cryptocurrency market isn’t a regulated exchange but operates across a decentralized network of computers.

Forex, or foreign exchange, similarly has no centralized exchange and trades through a decentralized global network of banks. You can trade forex (also called FX) 24 hours a day, five days a week. The time zones of the four forex trading centers (London, New York, Sydney and Tokyo) overlap with each other, so when one closes, another opens. Forex is a high-volume and very liquid market, allowing for potential opportunities at any time.

Commodity market hours are also virtually 24 hours a day, five days a week, with most closing from Friday evening to Sunday. Hours are split up by asset type (such as crude oil, wheat and gold) and the specific exchange, like the Chicago Mercantile Exchange.

These markets vary from relatively new to established. And there are some fundamental differences from stocks – like no centralized exchange for cryptocurrency and forex. But they’ve still provided a precedent for 24-hour trading – and perhaps more ammunition for its proponents.

Pros and Cons of Trading 24 Hours a Day

Is It Better to Trade on a 24-Hour Market?

On the surface, the ability to trade just about any time may sound like a net positive for investors. But there are several factors to consider.

Some advantages include:

• More flexibility – You can trade when it’s convenient for your schedule, not the market’s. You may be more of a night owl, have non-traditional hours or just don’t have time to trade during regular market hours.
• Quicker reaction to news – Earnings reports, analyst upgrades or downgrades and other market-moving events often happen outside of normal market hours. In a 24-hour market, you can be nimbler and potentially take advantage of opportunities.
• Alignment with world events – Global political and economic developments often impact U.S. markets. With round-the-clock trading, you don’t have to wait to respond to these events.
• Peace of mind? – Even if you don’t plan to trade overnight, knowing that you can manage your position at any hour may provide comfort.
• And here are a few key drawbacks:
• Lower liquidity – Although extended-hours trading has increased, it’s still small compared to the number of transactions that take place during prime trading hours. If you’re trying to buy or sell during certain hours, you might find fewer counterparties, making it more difficult to execute a trade.
• Limited order types – You generally have fewer types of trading orders available to you in extended trading hours (limit orders only, for example).
• Wider bid-ask spreads – This is the difference between the highest price a buyer is willing to pay (the bid price) and the lowest price a seller is willing to accept (the ask price). In extended trading, even if you can execute a trade, the bid-ask spreads are wider. So, whether you’re a buyer or seller, a wider spread means worse prices and worse performance for you.
• Increased volatility – With fewer trades during off-peak hours, stock prices can swing more widely. The speed that investors react to news (like earnings reports) during these hours can also cause volatility. For example, a stock might drop sharply if a company announces poor results after the market closes but trading could be smoother once investors have more time to digest the news and standard trading hours begin.
• Market fragmentation – Because markets aren’t linked during extended hours, it’s more difficult to get the best price available for a particular security. You might receive an inferior price on one trading platform than you would on another.
• Less peace of mind? – Always-on markets can also create pressure to monitor your investments constantly. And the temptation to react to every headline or piece of news can lead to poor decision-making or trading too aggressively.

Pre-Market Trading vs. After-Hours Trading

Extended-hours trading volume was once largely concentrated in the minutes and hours after 4 p.m. ET, mostly due to post-earnings trading activity. In early 2019, post-market trading accounted for more than 83% of all off-hours trading but by early 2025, pre-market took over and now accounts for more than 55% of shares traded during extended hours. Over that period, pre-market trading grew fifteen times compared to 2.3 times for the post-market session and 2 times for all other trading. The growth in early trading – especially before 7 a.m. – tracks with the growth of round-the-clock demand for U.S. securities, both domestically and abroad.

Historically, pre-market trading has also skewed toward lower-priced securities compared to the regular and post-market sessions. That's because retail trading – as opposed to institutional – makes up a large proportion of trading volume during this window.

While these developments speak to the growing popularity of off-hours trading and the potential for 24-hour trading, it’s still important to temper that enthusiasm with the risks and drawbacks we mentioned.

Who Should Consider 24-Hour Trading?

Traders Who Can Benefit from a 24-Hour Market

Always-on markets mean any retail investor could trade at any time. But should they? A 24-hour market may suit certain types of traders and investors including:

• Day traders who buy and sell securities frequently to try to profit from short-term price fluctuations.
• Swing traders who hold positions for several days or weeks, aiming to capitalize on short- to medium-term market movements.
• Institutional investors who have the experience, technology and resources to monitor markets around the clock and manage risk effectively.

Even savvy and veteran traders face risk in a 24-hour market. With less sophisticated tools and less experience, casual investors could face even more hazards – especially in volatile markets that could trigger emotional decisions.

Key Strategies for a 24-Hour Trading World

So, how can investors take advantage of the potential opportunities of 24-hour trading while managing the risks? It will take a disciplined approach to be sure. While not specific to extended trading, investors can employ self-imposed risk management tactics like stop-loss orders, which trigger a sale of a security if it falls to a specified price (although you could argue this may not be a good idea versus holding on through volatility). They can also set alerts to monitor market activity when they’re offline, pay close attention to global news to anticipate market movements, and focus trading on higher liquidity hours.

There are also guardrails built into some of the existing off-hours trading platforms. For example, Fidelity’s extended-hours platform and Robinhood’s 24-hour platform only accept limit orders, which execute a trade at a specified price or better. Strategies like limit orders are commonly used to hedge against volatility even during regular trading hours but might be even more useful in a 24-hour trading world.  

The Future of 24-Hour Trading

Will All Markets Become 24/7?

Clearly, 24-hour trading is on the rise as markets expand and become more global, trading technology becomes more sophisticated and investors demand more flexibility and access across markets. And we’re seeing brokerages and exchanges in traditional markets – like equities and ETFs – follow the model established by cryptocurrencies, forex and other assets.

However, while full 24/7 trading for all asset classes is possible, liquidity concerns, regulatory hurdles and operational risks still pose challenges. And while investors may welcome greater accessibility and opportunity, there may be a learning curve for many as they navigate a fast-moving, always-open market.

Is 24-Hour Trading Right for You?

It’s a question that you’ll have to answer for yourself as more extended-hours and round-the-clock trading platforms come online in the next few months and years. No one knows what kind of investor you are – including your comfort with risk – better than you. As long as you’re aware of the downsides that come with potential opportunities, you may be equipped to adapt to a 24-hour trading environment. As always, if you’re unsure about any investing strategy, an advisor can help guide you to one that’s suited to your goals and comfort level.