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    You are at:Home»Forex»How It Works and How To Get Started
    Forex

    How It Works and How To Get Started

    kaydenchiewBy kaydenchiewSeptember 6, 20250010 Mins Read
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    How it works and how to get started
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    The traditional U.S. trading window is 9:30 a.m. to 4 p.m., excluding weekends and holidays. Twenty-four/seven trading allows investors to continue trading certain assets outside these standard market hours. With increasing numbers of U.S. investors holding global assets, the mainstream adoption of cryptocurrencies, and the popularity of forex, investors want to answer when opportunity knocks, even if it’s 3 a.m. 

    To execute 24/7 trading, investors must use special trading platforms. Most U.S. equities still trade during the standard trading hours, but even the major markets like the NYSE and Nasdaq are expanding with pre-market and after-hours trading and exploring 24/7 trading in the future.

    Key Takeaways

    24/7 trading allows for continuous market opportunities beyond traditional hours.Key platforms and systems such as BOATS enable 24/7 trading..Benefits include responsiveness to global events, but risks like lower liquidity exist.Starting involves choosing the right platform and understanding order types.Effective strategies focus on risk management and market analysis.

    Mechanics of 24/7 Trading

    Investment trading is, at its core, matching buyers with sellers. Thanks to technology, 24/7 trading connects buyers with sellers from around the globe. 

    Platforms like Blue Ocean Alternative Trading System (BOATS) allow investors to trade select U.S. equities on brokerage platforms like Charles Schwab, Clear Street, Webull, and Interactive Brokers (IBKR) after traditional trading hours. When many investors and market makers log out for the day, savvy investors use these platforms to seize opportunities to react to global news, earnings reports, and market-moving events by logging on.

    Investors in alternative and foreign investment markets use exchanges like Coinbase, Binance, and MetaTrader 4, which offer extended trading hours depending on the asset class. 

    As 24/7 trading becomes more mainstream, trading platforms are popping up everywhere. Financial advisors like Colin Overweg, founder and CEO of Advize Wealth Management, and Hilary Hendershott, president and chief advisor of Hendershott Wealth Management, warned that not all trading platforms are created equal. 

    According to Colin, “You always have to start with the basics and ensure that the trading platform is properly registered with the main financial regulatory bodies such as the SEC or FINRA.” He also noted, “It’s worth considering the platform’s digital security standards and whether it complies with KYC (know your customer) and AML (anti-money laundering) regulations.”

    Hilary echoed that sentiment: “We start by running all financial relationships through three quick checks: Who owns it? Who regulates it? How has it operated to date?” She warned that “a platform that’s thin on capital or lightly supervised is no place for your money—especially when trading never stops.”

    Types of Assets Available for 24/7 Trading

    Not all assets are available for trading 24/7, but several come close, and many are available after trading traditional market hours.

    Cryptocurrencies operate nonstop across global platforms due to the decentralized nature of blockchain. Their round-the-clock availability makes them highly liquid and, subsequently, highly volatile.

    Forex (foreign exchange) trading is also traded nearly 24/7. Forex markets are open 24 hours a day, but five days a week (excluding weekends) across four major financial centers like London, Sydney, New York, and Tokyo.

    U.S. equity securities and traditional exchange-traded funds (ETFs) are becoming increasingly available after hours as long as the asset has enough supply and demand to support trading. Webull, Interactive Brokers, and E-Trade facilitate pre-market trading as early as 4:00 a.m. and after-hours trading until 8:00 p.m.

    The 24X National Exchange, which begins its rollout in September 2025, is approved by the SEC and will facilitate 23/5 trading of U.S. securities.

    And some U.S. securities and ETFs trade overnight between the end of after-market hours at 8:00 p.m. and pre-market hours of 4:00 a.m. using alternative trading systems like BOATS. 

    Tokenized ETFs and stocks trade 24/7, too. These assets are digital representations of actual ETFs and stocks acting as doppelgangers that mimic the price of the ETF or stock, but do not mean ownership. These assets are issued and traded on a blockchain and trade around the clock, seven days a week.

    Cryptocurrency
    24/7?
    Platforms like Coinbase and Binance

    Forex
    24/5
    Online brokers with forex trading like AvaTrade, IG, and FOREX.com

    U.S. equity securities and ETFs
    4:00 a.m. to 8:00 p.m., excluding weekends and holidays; some securities and ETFs trade overnight. 
    Brokerages using alternative trading systems like BOATS

    Tokenized securities and ETFs
    24/7
    Platforms like Sologenic and Swarm

    Benefits of 24/7 Trading

    One of the biggest benefits of 24/7 trading is taking advantage of opportunities due to breaking geopolitical news, earnings reports, or worldwide market-moving events. Asset prices sometimes overreact to breaking news or economic surprises, creating short-term irrational price movements. Opportunistic or night owl investors paying attention can exploit these price distortions before the market rights itself and prices even out. 

    Twenty-four/seven trading also broadens investors’ access to asset classes like crypto and forex, which trade all day, every day (or most days), enhancing a portfolio’s diversification. Even if investors don’t want to chug energy drinks and watch the market all night, they can still benefit from diversification across asset classes, especially when some assets hedge others. 

    Finally, 24/7 trading opens the door for investors to trade full-time worldwide, giving them ample opportunities to maximize their returns. 

    Risks and Challenges of 24/7 Trading

    Trading 24/7 has potential risks besides drowsiness at your day job. Twenty-four/seven has liquidity risk. “When you’re trading outside of regular hours,” said Overweg, “there is often lower trading volume, which can lead to unstable pricing,” creating a potentially low liquidity and high volatility market. 

    In fact, Hendershott explained, “Lower liquidity widens bid-ask spreads, magnifies price gaps, and turns a ‘sure thing’ into a costly surprise.” Without as many buyers and sellers, trades may execute only partially or at a non-competitive price.

    “Thin markets reward wolves and punish the flock.” – Hilary Hendershott, president and chief advisor, Hendershott Wealth Management

    It’s also important to consider the risks associated with online trading platforms. Limited support staff during wee hours may lead to lag times or inaccurate information. Platforms may not support 24/7 trading as efficiently as during business hours, which can be a costly technological hiccup for investors.

    Hendershott also warned of the emotional fatigue of round-the-clock monitoring of positions: “Many novices focus on the upside and ignore the mental toll of constant access.”  She added, “Decision fatigue creeps in quickly and amplifies errors disciplined investors avoid during regular hours.”

    How To Get Started With 24/7 Trading

    If you’re looking to turn your free time after work into a second shift for building wealth, getting started is easy by following a few important steps: 

    Choosing a Trading Platform

    You must first decide what you want to trade to find the platform that best suits your 24/7 trading goals. Some trading platforms support crypto, forex, or traditional stock or ETF trading after hours, but many others do not. You must pick a trading platform that fits your chosen asset availability with extended hours or 24/7 trading. 

    Choosing the right platform also means assessing a platform’s pricing and fee structures. Hidden costs can sink investment gains quickly. Your trading platform should also have technical support and security for order execution. Lag time in reporting can cause costly errors. 

    Tip

    Ensure that your trading platform has interfaces you understand and can easily access, especially if you frequently make trades on a mobile device. 

    Account Setup 

    Setting up an account for 24/7 trading is much like setting up a bank account, but with a few extra questions. 

    To set up an account:

    Pick the type of account, such as individual, joint, or retirement. Provide your full legal name, date of birth, address, phone number, Social Security number or tax ID, employment status, income, investment experience, and risk tolerance. Read the fine print. You will have to agree on arbitration documents and risk and trading disclosures before you may begin trading. 

    Placing Orders in a 24/7 Market

    Placing orders in a 24/7 market requires finesse that trading during regular market hours does not, due to the low liquidity and high volatility. Certain types of limit orders with time in force (TIF) settings can help investors find success in overnight markets by offering protection from wide price swings. 

    Strategies for Successful 24/7 Trading

    Trading 24/7 or after regular market hours requires a shift in mindset. To succeed in 24/7 trading, investors should mitigate risk, manage time, and stay abreast of asset and global developments. 

    Investors can mitigate risk in a few ways. First, they can use strategic limit and stop orders to set clear dollar-based thresholds and protect their investments from the wide swings prevalent after hours. Hendershott noted that investors should also mitigate risk by preserving their emotional and physical well-being:  “Solid sleep, exercise, and nutrition may sound unglamorous, but they’re powerful risk-management tools.” 

    Hendershott also suggested that investors have designated trading windows and stick to them to avoid burnout. 

    “Treat discipline as an energy budget,” she said. “Pre-write your rules, automate where possible, and give your brain real breaks.” 

    Consider designating your trading windows close to regular market hours to avoid market overreactions and wide price swings. 

    “Most large custodians offer extended trading hours just outside normal hours—maybe 2 hours before or after,” noted Overweg. “These are likely to have slightly better trading activity and more stable pricing.”

    Technical analysis of price patterns and volume signals can help investors succeed at 24/7 trading if they understand the limitations of this data during low liquidity periods. And, finally, staying informed about international developments, particularly in markets like forex and crypto, is essential outside regular U.S. market hours, as market-moving events can quickly move asset prices. 

    What Are the Best Platforms for 24/7 Trading?

    The best platforms for 24/7 trading depend on what assets you want to trade and your experience level. Some platforms like Interactive Brokers offer a wide range of assets for trading outside market hours, but may only be appropriate for more experienced investors. Robinhood or TD Ameritrade do not have as many assets to choose from, but are more beginner-friendly. Coinbase and Binance are popular choices for crypto investors who are not looking for investment opportunities outside crypto.

    How Does 24/7 Trading Affect Market Volatility?

    Twenty-four/seven trading affects market volatility because fewer buyers and sellers are participating in trading activities outside traditional market hours. This reduced liquidity can lead to wider bid-ask spreads and more volatile price movements.

    Are There Specific Times When 24/7 Trading Is More Advantageous?

    Twenty-four/seven trading can be advantageous outside market hours when major news like earnings reports, geopolitical events, or surprise economic data breaks in international markets. Markets may overreact, leading to opportunities for investors to buy low and sell high before the markets rebalance. 

    The Bottom Line

    Twenty-four/seven trading in the U.S. is here to stay, especially with NYSE and Nasdaq markets looking to expand their market hours and crypto and forex assets gaining momentum in the mainstream.

    Expanded-hours trading offers investors seeking flexibility and access to global opportunities many benefits, but it’s not without risks. Success depends on understanding market mechanics, strategic order use, and discipline. Before jumping into a 24/7 trading pool with both feet, weigh the pros and cons and ensure your timeline, goals, and risk tolerance support it. 

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