Every stock has two live prices. The bid is the highest price a buyer is currently willing to pay. The ask is the lowest price a seller is currently willing to accept.
The spread
The gap between bid and ask is the spread. If the bid is $50.00 and the ask is $50.05, the spread is five cents. When you buy at market you usually pay the ask. When you sell at market you usually receive the bid. The spread is a real cost of trading.
- Heavily traded stocks usually have tight spreads, often a cent.
- Thinly traded stocks can have wide spreads, which makes entering and exiting more expensive.
Regular trading hours
US stock exchanges trade from 9:30 AM to 4:00 PM Eastern, Monday through Friday, excluding market holidays.
Pre-market and after-hours
Many brokers also allow trading before the open and after the close. The exact windows differ by broker, commonly around 4:00 AM to 9:30 AM and 4:00 PM to 8:00 PM Eastern. Check your own broker's hours. Volume is lower outside regular hours, so spreads are wider and prices can jump.
Settlement
Since May 2024, US stock trades settle one business day after the trade (called T+1). Settlement is when the shares and cash officially change hands.
Education only, not investment advice. Trading involves real risk of loss, including loss of everything you put in. See the full disclaimer.