Closing Price The closing price represents a stock’s trading value at the conclusion of a trading day, serving as the most recent price until the next session. For equities, the market operates from 9:15 AM to 3:30 PM. In the case of equities, the closing price is computed as the weighted average price during the last 30 minutes, specifically from 3:00 PM to 3:30 PM. |
Opening Price The opening price is the initial trading price when the stock market opens for a trading day. Market hours for equities are from 9:15 AM to 3:30 PM. However, the exchange begins collecting orders from 9:00 AM to 9:07 AM, known as the pre-market order placing window. During 9:08 AM, matchable orders gets traded, and this traded price is known as opening price for the day. |
The opening price is influenced by the demand and supply of a stock within the pre-market window, leading to potential variations from the previous day’s closing price. Current Market Price (CMP) refers to the most recent price at which a stock was traded on the open market. |
Factors contributing to these differences during the time between the closing and opening prices include: After Market Orders (AMO): AMO significantly impacts stock prices during this period, as orders are placed even after the markets have closed, resulting in fluctuations in stock prices. News Impact: News related to a company released after market hours can alter investor perceptions and impact the stock price before the next trading day. Positive news normally tends to increase stock prices, while negative news can lead to a decrease. |
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