Categories: Money

What Is A Stock Trading Session In Australia?

During a stock trading session in Australia, investors can buy and sell shares on the stock exchange. Supply and demand determine the prices of stocks, with buyers willing to pay more for a stock when demand is high and sellers asking for less when demand is low.

The main stock exchanges in Australia are the Australian Securities Exchange (ASX) and the National Stock Exchange of Australia (NSX). The ASX is the largest stock exchange in Australia, with over 2,000 listed companies. The NSX is a smaller stock exchange with around 60 listed companies.

The Australian stock market trading hours

If you want to trade stocks in Australia, you’ll need to familiarise yourself with the Australian stock market’s trading hours. The Australian Securities Exchange (ASX) is open for trading from 10:00 am to 4:00 pm (AEST) Monday to Friday, except on public holidays. Pre-open trading starts at 9:00 am AEST.

Daytime and extended trading hours on the ASX

There are two types of trading sessions on the ASX

Daytime trading hours

Daytime trading hours are from 10:00 am to 4:00 pm AEST, while extended trading hours are from 4:10 pm to 5:00 pm AEST. Extended trading is only available for securities, such as exchange-traded options and futures. If you’re looking to trade stocks during the daytime session, you’ll need to place your orders by 3:30 pm AEST. This is because the market closes at 4:00 pm, and all orders placed after this time will be executed at the opening of the next trading day.

Extended trading hours

You can still place orders up until 4:10 pm during extended trading hours, but they won’t be processed until the market re-opens at 10:00 am the next day. Keep in mind that some stocks may have different closing times, so check the ASX website for updated information.

The two types of stock trading sessions in Australia

There are two types of stock trading sessions in Australia: continuous and auction sessions.

The continuous trading session

The continuous trading session is the most common type of stock trading session. It operates on a “first-in, first-served” basis, with orders being filled as soon as they are received. This means that the price of a stock can change rapidly during a continuous trading session.

The auction session

The auction session is a more traditional stock trading session where stocks are traded in an auction-style format. The auction session usually operates for a set period of 10 minutes, and orders are filled at the end of the auction period. This type of stock trading session is typically used for large orders to be filled at a specific price.

The types of orders that can be placed on the ASX

Two types of orders can be placed on the ASX: market order and a limit order.

A market order is an order to buy or sell a security at the best available price, while a limit order is to buy or sell a security at a specific price.

What you need to know about trading stocks on the ASX

If you’re interested in trading stocks on the ASX, there are a few things you need to know. First of all, you’ll need to open an account with a broker. You can do this online or through a traditional brick-and-mortar broker.

Once you have an account set up, you’ll need to deposit money. This money will be used to purchase stocks. You can then begin trading stocks by placing orders through your broker.

Conclusion

The ASX is a complex and fascinating exchange, and it’s essential to understand how it works before investing any money. If you’re new to stocks trading, it’s a good idea to get some education and practice trading on a demo account before diving in headfirst. With a little bit of knowledge and experience, you’ll be able to trade stocks like a pro on the ASX.

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