I am located in Germany and have bought securities from different countries at different market places like Xetra, Stuttgart. However, I fail to understand why trading of "Visa Inc." sometimes begins trading at 9:30 AM, even though it is part of the Dow Jones which begins at around 1:30 PM.

May someone give me a general (or deep if possible) overview of how location and times of stocks correlate and affect trading?


The Dow Jones is just an index, a secondary calculation out of various share prices; it has nothing to do with where shares are traded.

Shares are often traded at many exchanges; each exchange has its own rules on what they trade, and globally well known shares like Apple or Alphabet might be traded on many different exchanges all over the world, where smaller and lesser known shares are often only traded on their 'home' country's exchange.
There is no hard rule. Consider it like car trades - you can buy a Toyota in many places, most towns have dealerships that trade them; whereas Lamborghinis have a very limited number of dealerships, and you might have to go quite some distance to find one.

Each exchange has its fixed trading times, so depending on which exchange deals with certain shares, those shares can be traded at different times. Back to the car example: if the Toyota dealer in your town opens at 5 am, you can buy a Toyota at 5 am.

  • thank you for this huge clarification. So that means: a well known stock like Coca Cola can be purchased at any hour as long as I find right stock exchange that at that times trades. But why does the price action moves only during a specific time interva? since the trading volume affects the price. And since the Dow Jones is "just an index", why doesn't it move all day long? Apr 13 '20 at 14:41
  • 2
    @rantanplanthesecond The Dow Jones is an index of the share prices of thirty companies that are traded on the New York Stock Exchange or NASDAQ. It's not calculated or updated when those stock exchanges are closed, even if some of the constituent companies are also traded on other exchanges in other time zones.
    – Mike Scott
    Apr 13 '20 at 15:08
  • @MikeScott now I understand! Thank you guys! Apr 13 '20 at 21:49

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