Introduction

The world of investing is going through a dramatic transformation. What once was a 9:30 am to 4:00 pm ritual on the stock market is now morphing into a round-the-clock affair. This change is all thanks to – technology, global competition, and changing investor demands.

24/7 trading markets in India are no longer just limited to cryptocurrencies and foreign exchanges. Stocks are also joining the party.

But what’s fuelling this trend? And should you consider jumping on it too? In this article, you will learn the cause of this change, the opportunities it offers and how you can make it a part of your trading strategy.

The Rise of 24/7 Trading: What has Changed?

Stock trading was confined to strict hours for decades. But the digital revolution mixed with global news cycles, and the rise of retail investors has changed the game. Major brokers like Charles Schwab now offer trading from 4 A.M. to 8 P.M. ET. And new exchanges like the 24X National Exchange that is set to launch in 2025 are pushing toward nearly round the clock trading on weekdays.

This trend mirrors what is already standard in the cryptocurrency and forex markets. These are the platforms where trading never sleeps. The move to 24-hour trading is not just about convenience. It is more about staying competitive in a world where market-moving news can break at any hour and you as an investor get the flexibility to react instantly.

Let’s take for example when Tesla beat earnings expectations in October 2024. Its stock soared over 8% in after hours trading. This added roughly $50 billion in market value. If you had access to after-hours trading, you could act immediately. On the other hand, you’d have to wait and hope the opportunity did not vanish overnight if you didn’t have access.

Why Are More Investors Moving Towards This Change?

1. Instant reaction to news

Global events and corporate announcements don’t wait for the opening bell. With a 24-hour stock market, you can act on breaking news, earnings reports, geopolitical developments, or economic data as soon as it happens rather than waiting until the next day.

2. Globalisation of markets

As markets become more interconnected, you, as an investor, would want to participate in trends/events around the world. A political development in Asia or a central bank announcement in Europe can move U.S. stocks overnight. 24 hr trading allows you to respond in real time.

3. Easier than ever

Online brokerages and mobile apps have made it possible to trade anytime and anywhere. The barriers to entry are low and the tools are more powerful than ever.

4. Edge over others

Being able to trade outside regular hours can mean the difference between catching a big move or missing out for active traders/professionals. Stock market 24 hours trading is a way to stay ahead of the curve.

The Rules of Night Trading You Should Know

Are you considering after-hours trading? Here are three things to keep in mind-

• Stock prices can be dynamic and volatile since there is a thin volume

• Not all stocks trade after hours actively

• You can only make use of limit orders

What are the Steps to Trade After Hours?

1- Before the news breaks

The first thing that would be wise to do is to set up news notifications and price alerts. It is wise to place your orders well in advance. You should check your brokerage for the earliest you can set them. Then, you should check the recent trading volume. This will help you gauge how much interest there is in the stock after hours. It is wise to start smaller than you would otherwise.

2- During the news break

Many investors make the mistake of reading only the news headline. An important caveat could be in the third or second paragraph that could reverse your strategy. It is always wise to look for specific numbers like guidance, earnings etc.

3- Make some moves

This goes without saying but always use limit orders. It is wise to always start with 25% of your intended position size. You may follow the strategy to place the orders above the ask when buying or below the bid when selling. If spreads are wide, then it would be better if you are ready to adjust your limit price.

Pro tip: Most of the smart after-hours traders take their first trade as a test. If it is filled fast with good pricing, they have a better idea of the interest and can adjust accordingly.

Conclusion

Stock market 24/7 trading is not just a fad or trend that you should follow. It is a major shift in how markets work. 24/7 trading is revolutionising how investors operate, offering flexibility to react instantly to global events. But just because you have access to it does not mean you should use it. Smart and more successful investors treat 24/7 trading as a specialised tool. Not every investor needs to jump in headfirst—start small, use limit orders, and treat it as a tactical tool, not a daily habit.

Are you thinking of starting trading 24/7 after hours? Then, it would be wise for you to start small and stick to small orders. The future may never sleep, but smart investing still requires rest and strategy. The right thing to do here is to act only when the potential reward outweighs the higher risks.