If you simplify it a lot, high-yield investing depends on only two important decisions. Buying at the right time and selling at the right time. Because in order to make a profit, it ultimately depends on the execution of these two decisions. You would now also like to start investing, but are unsure how quickly you can turn your money invested in stocks back into cash? We therefore clarify in this article the question: „Can a stock be sold at any time?“
Basically, stocks can be sold during the trading hours of the respective market. At the Frankfurt Stock Exchange, these are between 08:00 and 22:00. Some platforms also offer the purchase and sale of stocks outside these times and on weekends and holidays. However, due to a lack of transparency and inaccurate pricing, trading after market close can be associated with increased risks.
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When are the trading hours on the stock exchange to sell a stock?
Actually, stocks can only be sold when the market is open. In 2018, the Frankfurt Stock Exchange extended the hours for trading stocks to 08:00 to 22:00. These trading hours do not apply to holidays and weekends. So if you want to sell a stock on the weekend, you have to wait until the market opens again on Monday.
On the other hand, there are some networks (brokers) that allow trading after hours. However, it is not recommended to buy or sell stocks after the market closes. This is because during these periods there may be a lack of transparency in the markets and inaccuracies in pricing. Thus, trading stocks after the market close is associated with higher risks.
You might also be interested in our article on „Why buy stocks?„. Here we give you 8 reasons to start investing.
No demand, no sale?
Basically, stocks can only be sold if there is a counterpart who wants to buy the security. However, most of the time there is such a counterpart, in the form of a buyer. This is also the case when your stock is in a downtrend. However, the sale can be associated with a rapid fall in the price, also with noticeable losses.
It rarely happens that the value of a stock drops so much that the price falls to a few cents and it is taken off the stock market. If this is the case, however, these stocks can usually still be sold in over-the-counter trading.
Can trading on the stock exchange be halted?
The stock exchange can also suspend trading in a particular stock for certain periods of time. This can happen if a company announces news that has a disproportionate impact on the stock price, but also if it is unclear whether the stock still meets stock exchange listing standards.
Furthermore, a significant imbalance of buy and sell orders can lead to a trading halt. This has already happened due to incorrect reporting, but it is still very rare. When it does occur, a trading halt usually lasts less than an hour.
Sell stocks with a stop order
You can also sell your stocks automatically with a stop order when it falls to a certain price. In doing so, you simply set a selling price. Let’s say that the value of your stock is 100€. However, you think that the price could fall sharply in the next few days.
In this case you can protect yourself against high losses by setting a selling price at 90€. If the value of the stock now falls to 90€, it will be sold automatically. However, if the price never falls that low, your stop order will not be triggered and your stock will not be sold.
Selling stocks with a limit order
The limit order can also be used to sell stocks automatically. It is used strategically, for example, in an uptrend. Let’s say your stock is worth 80€ (trending upwards). However, you think that this upward trend will end at 100€.
In this case you can set a limit (selling price) at 100€. If the stock reaches this price, it will be sold automatically and you will realize a profit. If the price is not reached, your stock will not be sold.
Conclusion - Can a stock be sold at any time?
It should normally be no problem to sell your stocks at almost any time. After all, during the week you have a period between 08:00 and 22:00 every day. Even though some platforms offer trading after the market closes, we recommend that you do not make any hasty decisions at these times. Either wait until the market opens, or hedge your positions in advance with stop and limit orders.
