Futures Measures

Overnight Trading Hours

| Nov 15, 2016
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    Futures Measures

    Overnight Trading Hours

    Nov 15, 2016

    While it's true that the bulk of US equity volume occurs from 8:30am to 3:15pm CDT, overnight trader hours can provide traders with unique opportunities as well as help traders get a sense of their portfolio's valuation for the next trading day. Today, Pete and Katie discuss the 3 major markets that can move asset classes overnight and explain what to keep in mind if you're a futures trader looking to take advantage of these potential bursts in price activity.

    Key Takeaways for Overnight Trading Hours

    • Upon the 5pm CDT futures market open, the next big contender to open their market is Asia (specifically the Nikkei 225 index).
    • Around 1am CDT, European markets open
    • While there may be additional volume during these time frames, it's important to keep in mind that liquidity (especially in options on futures) may still be sparse.
    • Traders can use overnight ranges to help with scalping as well as to get a better idea of how US Equity markets will behave based on their correlations to European and Asian markets as well as on the binary events and news that these locales report on.

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