Time frames are an essential consideration for anyone trading stocks in Australia. Depending on the type of stock traded, time frames can vary significantly. For example, shares listed on the ASX may only be traded during regular market hours, while you may trade OTCBB stocks 24 hours a day.

Australia has two primary stock exchanges: the Australian Securities Exchange (ASX) and the over-the-counter bulletin board (OTCBB). Each has different rules and regulations regarding time frames. To learn more about stock trading, get more info here.

How do time frames work?

If you place an order to buy or sell shares, your broker will execute the trade during the next trading session. It will be during regular market hours on a weekday for ASX-listed shares. For OTCBB stocks, your broker will execute the trade during the next available time that the stock is traded.

Therefore, if you place an order to buy shares at 3:00 pm on a Friday, your broker will not execute the trade until 10:00 am on Monday (assuming that Monday is not a public holiday).

Before placing an order, it is crucial to know the time frames that apply to different types of stocks. It will help ensure that your trade is executed when you want it to be and avoid any unwanted delays.

What time frames apply in Australia?

Regular market hours

The ASX is open on weekdays from 10:00 am to 4:00 pm (AEST). All ASX-listed shares can only be traded during these times.

Extended hours trading

Extended hours trading is available for some ASX-listed shares. It allows trades to be made outside of regular market hours, from 8:00 am to 10:00 am and 4:00 pm to 6:00 pm (AEST) on weekdays, and from 10:00 am to 12:00 pm (AEST) on Saturdays.

Not all brokers offer extended trading hours, and additional fees may be associated with this service.

After-hours trading

After-hours trading is available for some ASX-listed shares. It allows trades to be made outside regular market hours, from 4:00 pm to 6:00 pm (AEST) on weekdays and from 10:00 am to 12:00 pm (AEST) on Saturdays.

Not all brokers offer after-hours trading, and additional fees may be associated with this service.

OTCBB stocks

OTCBB stocks can be traded 24 hours a day, although there may be restrictions depending on the broker used.

How to trade stocks with time frames in mind

Determine the type of stock you want to trade

Stock can vary between exchanges; some only traded on the ASX, and others only traded on the OTCBB. Make sure you know which exchange your desired stock is traded on.

Choose a broker

Not all brokers offer the same services. Some may only offer trading during regular market hours, while others offer extended or after-hours trading. Choose a broker that offers the service that you need.

Consider the time frame

Your broker will execute the trade during the next trading session when you place an order to purchase or sell shares. Ensure you are aware of the time frames that apply to different types of stocks before placing your order to ensure that your trade is executed when you want it to be.

Place your order

Once you have considered the time frame, you can place your order with your broker. They will then execute the trade during the next available trading session.

Benefits of considering time frames when trading stocks

Make trades when you want to

Considering the time frame, you can ensure that your trade is executed when you want it to be. It allows you to take advantage of market conditions and avoid making trades outside appropriate times.

Choose a broker that suits your needs.

Not all brokers offer the same services. Some may only offer trading during regular market hours, while others offer extended or after-hours trading. Choosing a broker that offers the service you need will help you make trades when you want to.