Understand the Stock Market Trading Hours to Avoid Losing Profits

Why Should You Pay Attention to Trading Hours?

There is a fact that many new traders often overlook: the stock market trading session opening time is not just for reference but is a decisive factor for success or failure in each trade. In Vietnam, we have 3 main stock exchanges: HOSE, HNX, and UpCom, each with different trading hours. If you place an order outside of trading hours, it will be “pending” until the next trading session — and during that waiting time, prices can fluctuate unpredictably.

The Vietnamese stock market has developed impressively over the past 20 years, from just 2 initial stocks (REE and SAM) to over 1,600 listed companies today, with a market capitalization reaching 4 quadrillion VND (171 billion USD). Although the derivatives market has only been operating for 3 years, it has demonstrated strength with trading volume increasing 3.3 times per year. To leverage this advantage, the first step is to understand the operating mechanism and trading hours.

Stock Trading Hours: Know Immediately

The three exchanges HOSE, HNX, and UpCom all operate from Monday to Friday. The common trading hours are from 9:00 AM to 3:00 PM (GMT +7). On Saturdays, Sundays, and holidays, trading is completely halted. On average, each year, the exchanges trade about 250 days.

However, not all time slots are the same. Here are the details for each period:

Session I (9:00 - 11:30): This is the most active session with high trading volume. There is a periodic opening auction (ATO) from 9:00 - 9:15, then it switches to continuous trading.

Lunch Break (11:30 - 13:00): All exchanges pause trading. During this time, your orders will not be executed.

Session II (13:00 - 14:30): Trading continues at a moderate level. From 14:30 - 14:45, there is a closing auction (ATC).

End of Session (14:45 - 15:00): HNX has additional after-hours trading from 14:45 - 15:00, but HOSE and UpCom do not.

Derivatives Market: Opens Earlier

An interesting point is that the derivatives trading session opens 15 minutes earlier than the underlying stock market. Specifically:

• Session I: 8:45 - 11:30
• Lunch Break: 11:30 - 13:00
• Session II: 13:00 - 14:45

Currently, the Vietnamese derivatives market only has 2 products: VN30 futures index and 5-year Government Bond futures contracts.

Settlement Time: The Key to Avoid Cash Flow Blockages

After a successful transaction, your funds are not always credited to your account immediately that day. Each asset type has different settlement dates:

• T+0: Settlement on the same day
• T+1: Settlement after 1 day (excluding Saturdays, Sundays, holidays)
• T+2: Settlement after 2 days (excluding Saturdays, Sundays, holidays)

Specific rules:

• Bonds: T+1
• Stocks, closed-end fund certificates, ETFs: T+2

If you want to avoid cash flow issues, plan ahead, especially when trading on weekends.

Trading Orders: Characteristics of Each Exchange

Each exchange supports different types of orders with their own priority:

HOSE: Supports full range of orders: ATO, LO, MP, MOK, MAK, MTL, ATC

HNX: No ATO session but has after-hours trading with PLO orders

UpCom: Only supports continuous LO orders, with no periodic matching sessions

Important Tips for Individual Traders

If you are a beginner retail investor, Limit Orders (Limit Order) are the safest orders you can use during trading hours. This order allows you to set a specific price, avoiding unexpected price fluctuations.

Second, always factor in settlement times into your investment plan. If you need quick cash, T+2 investments may not be suitable. Third, understand the trading hours of each stock exchange to avoid surprises when your order is “pending” outside trading hours.

Finally, viewing the understanding of trading hours and matching mechanisms is not boring but foundational for successful trading. Spending 30 minutes learning today can save you millions in the future.