Can a NYSE ETF Be Traded 24 Hours a Day?

[pb2013 10]

Hello all- I'm a beginning trader, and am trying to find a final answer to this question, but haven't been able to do so yet:

 

I want to be able to buy & sell an ETF, like SPY for example, at any hour, 24 hours a day/5 days week.

 

Is this possible?

SPY is listed on the NYSE, and can be traded in 'extended hours', which appears to mean up to 8PM EST, or beginning at 4am EST in premarket.

 

How do I find out if this product can be traded on other exchanges that are open when the NYSE is closed?

For example, what if I want to trade it at midnight?

 

I would love to hear any recommendations for basic trading classes/education or even a referral to an ethical knowledgeable advisor.

 

I'm not looking for someone to broker my trades,but would like to be able to ask an expert questions like this as they come up, and obviously I'd be willing to pay a reasonable fee for that.

 

Thanks for any advice you may have.

--pb2013

[pb2013 10]

I'm bumping this question back up the queue-- it lookslike about 37 people have viewed it so far, but no replies.

 

I'm not sure of what the proper etiquette is at this site, so pardon me if my repeat of my question is rude, but I really need to find an answer-- my spouse *insists* that an ETF of the depth and power of DIA or SPY should be able to be traded 24 hours a day, "follow the sun", as one market closes and another opens up.

 

Can anyone answer this or point me to somewhere I can find out?

I've tried investopedia, looked at online brokers and all definitions of 'after hours trading' I can find, but still no definitive answer to my question.

 

Thanks for any help.

[jpennybags 11]

my spouse *insists* that an ETF of the depth and power of DIA or SPY should be able to be traded 24 hours a day, "follow the sun", as one market closes and another opens up.

 

Just because your spouse believes something doesn't make it true... even if they are always right.

 

An exchange traded fund (ETF) is a basket of stocks that are traded on a given market. If the market is closed then it can't be traded. Trading hours for the NASDAQ and NYSE can be found on their respective web sites.

 

If you want to trade 24 hours try the futures indexes.

[jpennybags 11]

I would love to hear any recommendations for basic trading classes/education or even a referral to an ethical knowledgeable advisor.

 

There is a wealth of information on this website. Most full service brokerages have learning centers on their web sites. NASDAQ and NYSE have learning centers on their web sites. With all of these you have to take the time and make the effort to explore. Sadly, many people just want to be handed an answer. You'll learn more and learn more quickly if you take the time.

 

You'll pay up for an advisor (mentor)... nothing in this business is cheap. If you post that you are looking for a mentor, I'm sure someone will hook up with you with either an offer or suggestions. I've seen similar posts come up from time to time and you may be able to gather some useful information from reading those threads.

[DbPhoenix 42]

If you post that you are looking for a mentor, I'm sure someone will hook up with you with either an offer or suggestions.

 

Reminds me of that South Park episode where Cartman goes online saying that he's a young boy looking for mature, older male friends and his screen instantly fills up with response windows.

 

One doesn't need to look for a mentor; all he has to do is stand still. If you literally know nothing, you must first find out how markets operate, i.e., why people buy and sell, why prices go up and down. Then you need to decide what you want from it. Then you need to figure out how you go about getting what you want.

 

This may be of help with regard to determining your objectives. There are also extremely basic books suggested at the end of the first section which will take you by the hand through the shallows. This may also be helpful regarding how and why the markets are what they are.

 

If you decide on futures, check out the CME site, though you may want to make sure you have a bottle of aspirin handy.

 

Avoid brokers for education.

 

Avoid vendors at all costs.

 

Avoid anybody who wants to teach you how they trade, even if they can and are willing to provide irrefutable proof that (a) they actually do trade and (b) they make a living at it.

 

If you've ever been to a bazaar in Marrakech, then you're most likely prepared for the vendor onslaught. If not, guard your wallet as if it were your most cherished possession.

[pb2013 10]

Just because your spouse believes something doesn't make it true... even if they are always right.

 

An exchange traded fund (ETF) is a basket of stocks that are traded on a given market. If the market is closed then it can't be traded. Trading hours for the NASDAQ and NYSE can be found on their respective web sites.

 

If you want to trade 24 hours try the futures indexes.

 

Thanks v much for your reply. Yes, I'm well aware that insistence doesn't equal veracity -- :-) but need to find some credible 'expert' answer to this, have been researching but haven't been able to get a clear understanding thus far.

 

Not to try to latch onto you like a leech, but a follow up question here:

It appears that this particular 'basket of stocks' is only sold on a single market?

 

Are there indexes other than futures indexes which trade 24 hours a day?

[pb2013 10]

There is a wealth of information on this website. Most full service brokerages have learning centers on their web sites. NASDAQ and NYSE have learning centers on their web sites. With all of these you have to take the time and make the effort to explore. Sadly, many people just want to be handed an answer. You'll learn more and learn more quickly if you take the time.

 

You'll pay up for an advisor (mentor)... nothing in this business is cheap. If you post that you are looking for a mentor, I'm sure someone will hook up with you with either an offer or suggestions. I've seen similar posts come up from time to time and you may be able to gather some useful information from reading those threads.

 

Another thanks for this advice. Yes, there's a wealth of info here, at every 'research' site, at all the brokers' sites and all over the net... figuring out which to focus on is like deciding on what college to go to, you know?

 

I'm generally in favor of the 'teach a man to fish' approach, not just get handed every answer, and am willing to invest time and $ to learn, however some info is hard to find when one doesn't know how to frame the question properly.

 

I do understand that nothing in the business is cheap, and tho wary of conmen, I do think paying a 'tutor' for some info I need to find quickly can be more productive than spending days/hours looking for answers that are well known to experienced people.

Thanks again for your help, much appreciated.

[jpennybags 11]

Reminds me of that South Park episode where Cartman goes online saying that he's a young boy looking for mature, older male friends and his screen instantly fills up with response windows.

 

Funny... Yea, could be something like that. I'm sure there are reputable people in the business, but the bad probably out number the good (the 80/20 rule). I have no personal experience with it, so I would not extend to bashing a service that I've never used.

 

Absolutely... buyer beware.

[pb2013 10]

Reminds me of that South Park episode where Cartman goes online saying that he's a young boy looking for mature, older male friends and his screen instantly fills up with response windows.

 

One doesn't need to look for a mentor; all he has to do is stand still. If you literally know nothing, you must first find out how markets operate, i.e., why people buy and sell, why prices go up and down. Then you need to decide what you want from it. Then you need to figure out how you go about getting what you want.

 

This may be of help with regard to determining your objectives. There are also extremely basic books suggested at the end of the first section which will take you by the hand through the shallows. This may also be helpful regarding how and why the markets are what they are.

 

If you decide on futures, check out the CME site, though you may want to make sure you have a bottle of aspirin handy.

 

Avoid brokers for education.

 

Avoid vendors at all costs.

 

Avoid anybody who wants to teach you how they trade, even if they can and are willing to provide irrefutable proof that (a) they actually do trade and (b) they make a living at it.

 

If you've ever been to a bazaar in Marrakech, then you're most likely prepared for the vendor onslaught. If not, guard your wallet as if it were your most cherished possession.

 

 

Thanks so much for the info, the warnings and the advice! I've not been to Marrakesh, but do remember that South Park episode clearly!

Yup, keeping a close eye on the wallet, don't 'believe' any of the gurus/bloggers/motley and other 'services' who swear they can time the market (and show me, today only, only for me, now now now, show me how! )

 

Nonetheless... In addition to educating myself, I would be interested in a knowledgeable, ethical 'tutor' I could go to with confidence for questions I cannot reasonably find answers to.

 

I hear you re the 'just have to stand still' idea, but really, aren't there some ethical experts out there who will share their expertise for a reasonable fee? I don't want to give them my money to run, I just want to be able to pick their brains on 'core facts' now and then.

 

I do understand that I'd need to vet their claims of expertise - was hoping someone on these boards could make a recommendation.

I'm well aware of the irony though- everyone I know who has ever used a 'financial advisor' has been unhappy with them-- hence my decision to begin to understand and manage my money for myself.

 

Thanks again for your time and the great links, going to read the 'Trading Journal' right now.

[DbPhoenix 42]

I hear your 'just have to stand still' idea, but really, aren't there some ethical experts out there who will share their expertise for a reasonable fee? I don't want to give them my money to run, I just want to be able to pick their brains on 'core facts' now and then.

 

Why not just ask them here? At least you'll get more than one side.

[jpennybags 11]

Thanks v much for your reply. Yes, I'm well aware that insistence doesn't equal veracity -- :-) but need to find some credible 'expert' answer to this, have been researching but haven't been able to get a clear understanding thus far.

 

Not to try to latch onto you like a leech, but a follow up question here:

It appears that this particular 'basket of stocks' is only sold on a single market?

 

Are there indexes other than futures indexes which trade 24 hours a day?

 

First let me say that I'm no expert on ETF's. I've rarely traded them. I get better intraday moves from individual stocks (just not interested in ETF's). I'm hearing your question, and I think you are lacking some basic knowledge. I'll try not to get too far into the weeds.

 

To your question... "are there indexes other than futures which trade 24 hours a day":

 

The short answer is no... you can't actually trade an index.

 

An index such as the S&P 500 is comprised of 500 individual stocks traded on the NYSE. the price that gets listed for the S&P 500 throughout the day is simply an aggregate of the price movement of these individual stocks throughout the day. The index itself can't be traded. There are trading vehicles (if you will) such as an ETF that are comprised of securities (roughly, a basket of stocks). The ETF is designed and managed to mimic the movement of the actual index. The SPY ETF trades on on the NYSE during the available market hours... regular session, pre market, and after market. You can not trade it at any other time. Please note that pre market and after hours is not the best time to trade.

 

The futures markets are another way to trade an index. The futures markets and the actual index are linked through arbitrage (here we go into the weeds). It's not really important to understand how it works, just know that it does. The futures markets trade 24 hours a day (with exception of a brief maintenance period).

[pb2013 10]

Why not just ask them here? At least you'll get more than one side.

 

I will ask here,when/if I can't find an answer via my own research or beginning reading/education--

tho trying not to be a 'brain-sucker' - you know, how you answer a question for someone and then they have another 25 or so 'follow ups' ?

 

However, my spouse also wants a professional 'go-to-guy' for timely answers, similar to going to lawyer for legal, accountant for financial advice.

 

Thanks again.

[pb2013 10]

To your question... "are there indexes other than futures which trade 24 hours a day":

 

The short answer is no... you can't actually trade an index...

 

Please note that pre market and after hours is not the best time to trade. QUOTE]

 

jpennybags- Thanks again. I actually do understand about the indexes, probably my use of terminology and phrasing was unclear, sorry.

 

I think I've got the answer now -- tho a continuing problem is my spouse has gotten a different answer from both a professional commodity broker pal and from a veteran part time investor- both have said Yes, you can trade the, ie DIA ETF 24 hours a day.

 

So, we started with a false assumption:

1) that a 'mega-sized' ETF such as DIA or SPY would be actively invested in by traders all over the world if they found that specific ETF attractive

 

2) That those investors would be able to trade in these products during *their own* business hours , not restricted to US market timeframes ( market , after and pre-)

 

3) We assumed that one could purchase these products on a 'follow the sun' basis, not understanding that the state of the market (open/closed) which 'owns' the product, if you will, had a practical effect on whether you could trade it or not.

 

4) Have also read much about the risks of after hours: wider spread, lesser volume, the risk of no one interested in your offer, and potential differences in $ regulations from the US, as well as higher costs. Got all that, we are just trying to accurately identify what the 'trading window' really is.

 

I do understand also that FOREX is open 24 hours a day, but not going there at this time- I still have a lot to learn before trying such sophisticated trading.

 

I do appreciate your time & help. thank you.