Trading hours and sessions

Index futures trade almost around the clock. That sounds like more chances to trade, but mostly it means more chances to make mistakes at odd hours of the night. Knowing when the market is busy, and when it's quiet, helps you pick one session and stick to it.

All times in this lesson are Eastern Time (ET), since that's how most U.S. traders talk about the clock.

Globex hours and the daily break

CME Globex equity index futures, including NQ and MNQ, trade Sunday to Friday, from 6:00 p.m. to 5:00 p.m. ET the next day. Monday through Thursday there is a one-hour break from 5:00 to 6:00 p.m. ET. The week opens Sunday at 6:00 p.m. and closes Friday at 5:00 p.m.

One small trap: CME's own hours page lists times in U.S. Central Time, so you'll see 5:00 p.m. to 4:00 p.m. there. It's the same schedule, just written one hour behind ET.

Asia, London and New York

Traders usually split the futures day into three rough sessions. These aren't official CME hours, just the times when big markets around the world are open.

• Asia: the evening in New York, after the Globex reopen. Volume on NQ is usually lighter, and moves can be slow.
• London: roughly 3:00 a.m. ET onward, when European markets open. Activity tends to pick up.
• New York: the morning in ET, and especially the stock market open. This is when most volume shows up.

I trade one session only. That's a rule for my own simulated record, not something you have to copy. But picking one session makes your results easier to judge, because every day looks like the last.

The 9:30 a.m. ET cash open

Nasdaq's regular stock trading runs 9:30 a.m. to 4:00 p.m. ET, Monday to Friday. Futures traders call 9:30 the cash open, because it's when the stocks inside the Nasdaq-100 start trading in full.

The open is busy for clear reasons. Orders that built up overnight hit the market at once. Funds rebalance, and news from earlier in the morning gets priced in. So spreads can jump, price can swing both ways fast, and stops can fill worse than you planned. Some traders love this window, while others wait 15 or 30 minutes for things to settle. Know which kind you are.

Converting to your own time zone

Most of the U.S. moves its clocks for daylight saving time, but Arizona doesn't. Most of the state stays on Mountain Standard Time all year. That means the gap between Phoenix and New York changes with the season.

From March to November, while ET is on daylight time, Arizona is three hours behind. The 9:30 a.m. ET open is 6:30 a.m. in Phoenix. In winter, Arizona is two hours behind, so the open is 7:30 a.m. If you live outside ET, write your local open time for both seasons on a sticky note.

Holidays

Futures don't close on every holiday, and they don't stay open on every one either. On many U.S. holidays, Globex runs shorter hours or closes early. CME posts these on its holiday hours page and says they are usually final about two weeks ahead. Check it before any holiday week instead of guessing.

The takeaway

NQ and MNQ trade 6:00 p.m. to 5:00 p.m. ET, Sunday to Friday, with an hour off each day. The 9:30 a.m. ET open is the busiest stretch. Pick one session, learn it in your own time zone, and check CME before holidays.

Do this today

• Write the Globex open, the daily break and the 9:30 a.m. ET open in your own local time.
• Watch the first 15 minutes after 9:30 a.m. ET on a simulator chart without trading, and note how fast price moves.
• Bookmark CME's holiday trading hours page and check it before the next U.S. holiday.

Check yourself

Answer each one in your head, then open it to check.