There are two phases of trading on the Australian Securities Exchange. The first phase is known as the “Pre-open market.” This is the period before the market opens. The second phase is known as the “adjustment” phase. During this time, traders can make changes to their orders.
Pre-open market phase
The pre-open market phase occurs before trading begins on a stock exchange. It is the period before trading begins when equity stock prices are determined by the execution price of the first matched order. Prior to 2010, this method of determining the opening price of a stock led to high market volatility. To combat this, BSE and NSE introduced the pre-open market to help manage market volatility.
During the pre-open market session, investors can place buy and sell orders for the day. The price band applicable will be the same as in the normal market. They can also make changes to their orders during the pre-open session.
The Adjust phase is the last phase of the trading day. This phase is also known as overnight trading. During the Adjust phase, only one broker is allowed to enter a new order or bid. However, the broker can make changes to existing orders during this time. There are also temporary halts in trading after certain announcements that affect the market.
On normal trading days, the Australian stock exchange is open from 10am to 4pm. It is possible to enter orders on the ASX website prior to the market opening. These orders are then queued for trading. Overnight trading is the ‘adjust phase’, from 4:12 pm to 5pm. Brokers and investors enter orders in the ASX Trade system and they are processed chronologically.
Normal trading hours
The Australian Stock Exchange (ASX) operates normal trading hours from 10am to 4pm AEST, Monday to Friday. The exchange is closed on public holidays. Outside of these times, orders can be entered and changed but no trades will be executed. This is because the market is in ‘adjustment’ phase from 4:12pm to 5pm AEST.
The ASX has different trading hours compared to other stock exchanges. For example, the Swiss Exchange and the Frankfurt Stock Exchange have different trading hours. The Frankfurt Stock Exchange, which is located in Europe, is open from 9:00am to 5pm on weekdays. Unlike the ASX, the London Stock Exchange is open around the clock.
The ASX is organized by industry and sector, with each company belonging to a different industry. These categories help investors to find companies in specific areas. Listed companies are assigned to an industry when they are first listed.
National public holidays
If you’re looking to invest in shares of a particular company, you may be wondering when trading will open on national public holidays. There is no official date for the ASX to open on a national holiday, so you’ll need to plan accordingly. The ASX is open from 10am until 4pm Sydney time, seven days a week.
As a general rule, the ASX is closed on national public holidays, however, there are a few exceptions. The following are examples of days when trading is suspended: 1 January, Australia Day (26 January), Good Friday (which varies each year), and Queen’s birthday in June. Additionally, the ASX will close on Easter Monday.
Stock exchanges with an official lunch close
Stock exchanges are marketplaces and infrastructure that facilitate the trading of stocks. They are organized and operated by corporations to allow companies to list in the marketplace. A stock market is the collection of all stocks and groupings of stocks. Some stock exchanges have an official lunch close, while others do not. The major stock exchanges that have a lunch close are the Shanghai Stock Exchange, the New York Stock Exchange, the Tokyo Stock Exchange, and the Shenzhen Stock Exchange.
Some stock exchanges also follow the public holiday calendar. Some are open on weekends and holidays, while others are closed. The New York Stock Exchange is closed on July 4 for U.S. Independence Day, while the Singapore Stock Exchange is closed for two days during the Chinese New Year. Most stock exchanges around the world have set calendars for their annual holidays, and you can check them well in advance to see when the market will be closed.