Market Opening and Closing Prices
By definition the opening and closing prices are the first and the last traded price for a particular financial instrument respectively. When combined with previous day prices, they are good indicators of market trends. Today they are available from virtually all media and are widely used by both highly active and less active traders to find out trading opportunities.
But today pre and post market trading services are available, which enable traders to trade before and after regular trading hours (9.30am to 4pm) respectively. Some media take the first and last trades in these trading hours as opening and closing price, while others take the first and last trades in the regular trading hours as opening and closing price. Thus you may find two different opening or closing price for same instrument in the same market.
One another situation is in forex market, where the market is open 24 hours and continuously 5 days a week (Sunday 5pm to Friday 4pm EST). So the actual forex market opening and closing prices are the first traded price of Sunday and the closing price is the last traded price of Friday. But the daily opening and closing price we found around came on a local or regional (North America, Europe and Asia) basis. For North American region the opening price is the first traded price after the opening of the New York market at 8am EST, and closing price is the last price before the closing of NY market at 3pm EST.
But today pre and post market trading services are available, which enable traders to trade before and after regular trading hours (9.30am to 4pm) respectively. Some media take the first and last trades in these trading hours as opening and closing price, while others take the first and last trades in the regular trading hours as opening and closing price. Thus you may find two different opening or closing price for same instrument in the same market.
One another situation is in forex market, where the market is open 24 hours and continuously 5 days a week (Sunday 5pm to Friday 4pm EST). So the actual forex market opening and closing prices are the first traded price of Sunday and the closing price is the last traded price of Friday. But the daily opening and closing price we found around came on a local or regional (North America, Europe and Asia) basis. For North American region the opening price is the first traded price after the opening of the New York market at 8am EST, and closing price is the last price before the closing of NY market at 3pm EST.
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posted by Daniel Pipitone at
12:46 AM
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