Nasdaq Trading Hours & Basics: How to Trade the Nasdaq 100

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Anyone who is looking to find ways to use their money to make money has probably heard about the stock market. There are lots of different stock market exchanges to choose from. While the New York Stock Exchange is one of the most popular, another option is the NASDAQ Stock Exchange. The NASDAQ is a global electronic marketplace where investors are able to buy and sell different types of securities. In 1971, the NASDAQ Market was created by the National Association of Securities Dealers. The purpose of the NASDAQ is to enable investors to trade Securities using a fast, transparent, and computerized system. Also referred to as the NASDAQ Composite, this is an index that contains more than 3,000 stocks that are listed on the exchange. Some of the biggest companies in the world, including some from Hong Kong, are traded on the NASDAQ Stock Exchange. A few of the biggest examples include Intel, Amazon, Microsoft, Apple, Google, and Oracle. For this reason, anyone who would like to learn more about this stock market and the exchange should keep a few key points in mind.

NASDAQ Trading Hours: An Overview of Regular and Extended Hours Trading

When it comes to trading on the NASDAQ Stock Exchange,  it is important to know the market hours of the exchange. Like most other stock exchanges in the local area, the NASDAQ is open for six and a half hours per day. Regular trading hours takes place from 9:30 a.m. to 4 pm. There are also extended hours available as well. The extended hours trading takes place before and after the hours listed above. Pre-market extended hours take place from 4 a.m. to 9:30 am even though most pre market trading takes place closer to 9:30. After market hours trading takes place from 4 p.m. to 8 pm. This is a great opportunity for traders to buy or sell that last stock during an extended hours trading opportunity. In this manner, the NASDAQ provides added stock trading flexibility using additional hours trading sessions.

Even though most people are only able to place orders during normal trading hours or regular hours, there are also ways  for people to get approved to execute stock trading outside of regular hours. Those who are interested in swapping stocks outside of regular trading should speak to a professional about lengthening their trading day. Next, it is important for everyone to learn the different stock market order types of taking place on the NASDAQ.

The Types of Stock Market Orders Placed on the NASDAQ Composite

In general, when it comes to the NASDAQ exchange, there are two major types of orders that all traders and investors should keep in mind. They are referred to as a market order and a limit order.

Market Order

The most common type of order is the market order. In the eyes of most people, a market order is the most basic type of trade that could be executed. This is an order to either buy or sell a stock immediately and at the current price. If someone takes a look at the ticker symbol of one of the companies on the NASDAQ and likes the price, then he or she could place a market order to buy it immediately. In general, when people place an order for a stock, they are going to purchase that stock at or near the posted asking price. On the other hand, if someone is getting ready to sell a stock, then he or she is going to receive a price at or near the bid that has recently been posted.

It is important to note that the most recently traded price is not necessarily the price at which the market order is going to be carried out. While it is fast, if the market is particularly volatile, then the price at which the order is filled, or executed, could deviate from the most recently seen price. Therefore, market orders do not necessarily guarantee a price, but they do make sure that the order is carried out as quickly as possible.

On the whole, market orders are popular among individual investors who are trying to buy or sell a stock without experiencing any delays. The good news is that the NASDAQ is traded electronically, ensuring that orders are carried out as quickly as possible, even on Friday. The biggest advantage of trading using a market order is that the trade is guaranteed to be filled quickly. Even though the investor might not know the exact price at which the stock is going to be purchased or jettisons, market orders that are likely to trade tens of thousands of shares per day are going to receive prices that are very close to the post a bid or ask.

Limit Order

The other big category of order that someone might place on a NASDAQ is referred to as a limit order. Also called a pending order, this allows investors to place orders that are carried out at specified prices in the future. This order is not going to be carried out until the price of the stock reaches a specified level. If the price is not reached, then a limit order could end up expiring.

There are four different types of them at orders that someone might like. These include:

  • Buy Limit: A buy limit order is placed to purchase a security at or below a specified price. This means that the order is placed below the current bid of that specific stock. If a stock falls to that price, the order is carried out.
  • Sell Limit: A sell limit order is placed to sell a certain stock at or above a specified price. In order for this trade to be carried out, the order has to be placed above the current posted price. 
  • Buy Stop: This is an order that is placed to purchase a certain stock above the currently posted price. This stop order is only going to be placed once a certain price has been reached, also known as the stop level. 
  • Sell Stop: A sell stop order is an order to sell a stock at a price that is below the current price of the stock. This order is only going to become active once the specified stop level has been attained.

This is a brief overview of the various orders that someone might be able to place on the NASDAQ Stock Exchange. It is important to think about these orders carefully when deciding when to carry them out.

The NASDAQ Stock Exchange as an Investment Vehicle

Overall, the NASDAQ is a large stock exchange that has thousands of investment opportunities for investors. It is a good idea for investors to become familiar with the stocks that are traded on this stock exchange, as it is one of the biggest exchanges in the world. Those who are able to plan their Investments carefully have the opportunity to generate significant returns using the stock market.

 

Jacob Maslow is a native New Yorker with  five children. He left his payroll manager position after finding that his true passion was in writing, and has never looked back.

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