Dear Client,

Starting from April 07, 2024, the trading hours of some MT4/MT5 products will change due to the upcoming Daylight Saving Time change in the AU.

Please refer to the table below outlining the affected instruments:

The above information is provided for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Have you ever wondered what happens to the market after the closing bell?

Well, you are not alone. After-hours trading, also known as extended-hours trading, offers traders the opportunity to buy and sell assets outside of regular market hours.

In this beginner’s guide, we’ll delve into the world of after-hours trading, exploring its mechanics, advantages, disadvantages, risks, and essential tips for traders.

What is after-hours trading

Imagine this scenario: you are sitting at your computer after a long day of work, and suddenly you hear about a groundbreaking development in a particular asset you’ve been eyeing. With traditional trading hours closed, you might think you’ve missed your chance to act. However, that’s where after-hours trading comes into play.

After-hours trading refers to the buying and selling of assets outside of the standard trading hours of the major exchanges. These extended trading hours typically occur before the market opens in the morning and after it closes in the evening.

While after-hours trading was once limited to institutional traders, advancements in technology have made it accessible to retail traders as well.

Market hours vs. after hours

During regular market hours, the majority of trading takes place. After-hours trading, on the other hand, occurs before the market opens (pre-market) and after it closes (post-market), extending the window of opportunity for traders.

For European traders, after-hours trading usually occurs from 9:00 AM to 5:30 PM Central European Time (CET), extending until around 8:00 PM CET after the regular market closes. Some platforms offer trading until 10:00 PM CET.

Participants in after-hours trading

After-hours trading isn’t just for professionals. Both institutional traders, such as hedge funds and mutual funds, and retail traders like individual investors have the opportunity to participate. This increased accessibility has levelled the playing field, allowing traders to capitalise on market movements outside of regular hours.

Assets for after-hours trading

While after-hours trading encompasses various asset classes, certain assets are more actively traded during extended hours. Stocks of companies reporting earnings after the market closes, futures contracts tied to commodities, and certain foreign exchange pairs can experience heightened activity during after-hours sessions. However, it’s essential to research and understand the liquidity and volatility of specific assets before trading them after hours.

Special techniques for after-hours trading

After-hours trading offers unique opportunities for traders, but it requires specialised techniques to navigate effectively. Here are some strategies tailored for non-professional traders:

1. News-based trading

Stay updated on news and events outside of regular market hours, especially earnings announcements and major corporate developments. React quickly to market-moving news to capitalise on price movements.

2. Earnings plays

During earnings season, focus on stocks releasing earnings reports after hours. Anticipate surprises or discrepancies between actual results and expectations to make informed trading decisions.

3. Gap trading

Take advantage of price gaps between the closing price of one session and the opening price of the next. Enter positions at the open of after-hours trading and anticipate price retracements or continuations.

4. Overnight swings

Identify potential overnight swings by analysing pre-market activity and news catalysts. Enter positions before the close and hold overnight to profit from anticipated price movements.

5. Extended hours breakouts

Look for breakout opportunities outside of regular market hours. Enter positions when an asset’s price breaks significant support or resistance levels, and ride the momentum as the price continues to move.

6. Arbitrage opportunities

Exploit price differences between different markets or platforms to make risk-free trades. Buy and sell the same asset simultaneously in different markets to lock in profits from pricing discrepancies.

7. Volatility squeeze plays

Identify assets with low volatility and anticipate a potential breakout. Use technical indicators such as Bollinger Bands or Keltner Channels to pinpoint periods of low volatility and enter positions before expected price movements.

Pre-market analysis

Before diving into after-hours trading, it’s essential to conduct pre-market analysis to prepare yourself for potential trading opportunities. Here’s a simplified guide for novice traders:

Step 1. Stay updated on market news

Keep an eye on news and events that could affect asset prices during after-hours trading. This includes earnings reports, economic data releases, and major news headlines. Be aware of any significant updates or surprises that could impact market sentiment.

Step 2. Watch pre-market activity

Monitor pre-market trading to gauge investor sentiment and anticipate potential price movements. Look for significant price changes and trading volume, as they can provide clues about market direction. Pay attention to how prices react around key levels of support and resistance.

Step 3. Use simple technical indicators

Consider using basic technical indicators like moving averages or support/resistance levels to help inform your trading decisions. These indicators can provide insights into market trends and momentum. Keep your analysis straightforward and easy to understand.

4. Plan your strategy

Based on your analysis, develop a clear trading strategy outlining your entry and exit points, as well as your risk management approach. Stick to your plan and avoid making impulsive decisions based on emotions or short-term fluctuations. Stay disciplined and patient.

Risks and considerations

• _{Volatility: after-hours trading is known for its volatility due to reduced liquidity and participation, amplifying price fluctuations. Not-experienced traders should be cautious and ready for sudden price movements.}
• _{Liquidity concerns: Thin trading volumes in after-hours sessions can hinder trade execution at desired prices. Always consider liquidity when trading outside regular market hours to avoid difficulties in executing trades.}
• _{Price discrepancies: Asset prices often vary between regular market hours and after-hours trading. This discrepancy can offer both opportunities and challenges for traders to navigate.}
• _{Impact of news and events: News and events outside regular market hours can significantly influence after-hours trading. Traders must stay informed and be prepared to react swiftly to market-moving developments.}

In conclusion, after-hours trading offers traders an opportunity to capitalise on market opportunities outside of regular trading hours. While it can be advantageous, it also comes with increased risks and challenges. Remember, education and preparation are key to success in after-hours trading. Happy trading!

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

CURRENCIES:

US Dollar Performance and Key Currency Pairs

• The U.S. dollar (DXY index) decreased slightly (-0.2% to 104.75), retracting from a five-month high.
• Global yield increases outpaced U.S. government rates, affecting the dollar’s strength.
• Upcoming Economic Events and Market Focus
• Attention is on the upcoming March U.S. jobs report (nonfarm payrolls) due Friday.
• This data is crucial for assessing the labor market and influencing Federal Reserve policies.

Technical Analysis for Currency Pairs

• The article examines the technical outlook for EUR/USD, USD/JPY, and USD/CAD.
• Labor Market and Monetary Policy Expectations
• Market anticipates a 200,000 increase in U.S. employment for March, maintaining a 3.9% unemployment rate.
• Potential for higher than expected job growth, affecting Federal Reserve rate cut expectations.

Implications of Nonfarm Payroll (NFP) Report

• A strong NFP result may lessen the likelihood of a significant Fed rate cut in 2024.
• Conversely, a weak NFP could prompt expectations for earlier Fed rate cuts, possibly weakening the U.S. dollar.

STOCK MARKET:

• Declining Market Share in China
• Tesla’s market share in China has decreased from 10.5% in Q1 2023 to around 6.7% by December.
• This reduction reflects intensified competition and weaker consumer demand in China.

Comparison to Local Competitors

• Tesla faces strong competition from local Chinese EV manufacturers like BYD, Nio, Xpeng, and Xiaomi.
• Rivals are offering diverse and technologically advanced models, while Tesla has mainly relied on its older Model 3 and Model Y.

Impact of Price Strategies

• Tesla’s previous price cuts have been countered by aggressive pricing from Chinese automakers.
• Tesla announced a price hike, prompting competitors to deepen their discounts.
• Slowing EV Market Growth in China
• Growth in China’s EV market is slowing, with a 25% increase projected for this year, down from previous years.
• This slowdown has led Tesla to cut production at its Shanghai factory.

Recent Sales Figures

• Tesla delivered 89,064 vehicles in China in March, a slight increase from February but consistent with March 2023 figures.
• Globally, Tesla missed its delivery target by a significant margin, marking a challenging period for the company.

Start your CFD Shares Trading journey with VT Markets now!

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

As the world’s economies continue to navigate the post-pandemic landscape, key indicators from the United States, Switzerland, and Canada offer insights into the ongoing recovery and challenges faced by various sectors. The upcoming weeks are set to deliver pivotal data on services sector performance, inflation rates, and employment changes that will shed light on the economic direction of these countries. Below, we delve into the specifics of each report and what analysts are anticipating.

U.S. ISM Services PMI Takes a Slight Dip

In the United States, the Institute for Supply Management (ISM) Services Purchasing Managers’ Index (PMI) saw a slight decline to 52.6 in February 2024, down from a four-month peak of 53.4 in January. This metric is crucial as it reflects the health of the services sector, which constitutes a significant portion of the U.S. economy. The anticipated PMI for March, set to be unveiled on 2 April 2024, is expected to hold steady at 52.6, signaling continued expansion in the services sector, albeit at a tempered pace.

Switzerland’s Inflation Rate on the Rise

Moving to Europe, Switzerland reported an uptick in its inflation rate to 0.6% in February 2024, a significant jump from the 0.2% recorded in the preceding month. This increase was primarily driven by higher costs for housing rentals and air transport. Analysts are closely watching the Swiss economy and forecast a further inflation rise of 0.3% for March 2024, with the official figures scheduled for release on 4 April 2024. This gradual increase in inflation could signal a strengthening consumer demand and economic activity in the country.

Canadian Employment Figures Show Growth

In Canada, the employment landscape showed positive momentum with the addition of 40.7K jobs in February 2024, an improvement over the 37.3K jobs added in January. However, the unemployment rate edged higher to 5.8% in February, up from 5.7% the month before. The focus now turns to the March 2024 employment report, expected on 5 April 2024. Analysts predict a more modest job growth of 25K, with unemployment anticipated to tick slightly higher to 5.9%. These figures suggest that while the job market remains robust, it faces headwinds that could moderate growth.

U.S. Job Market Shows Resilience Amidst Challenges

Lastly, the U.S. job market continued to demonstrate resilience with the economy adding 275K jobs in February 2024, surpassing the revised figure of 229K in January. Despite this strong job growth, the unemployment rate increased to 3.9%, the highest level since January 2022. Looking ahead to March 2024, analysts are forecasting the addition of 200K jobs, with the unemployment rate expected to remain steady at 3.9%. The upcoming jobs report, due on 5 April 2024, will be crucial in assessing whether the U.S. labor market can sustain its momentum amidst economic uncertainties.

As these economic indicators unfold, they will provide valuable insights into the health and trajectory of the global economy. Stakeholders, from policymakers to investors, will be watching closely to gauge the effectiveness of current economic policies and to strategize for the future amidst a landscape of ongoing challenges and opportunities.