Sunday Stock Market Trading

It is possible to trade some stock market indices on Sundays. I.e. so you can offset your normal weekday positions and reduce your risks if news breaks over the weekend.
Err…Hallelujah?


Weekend Trading

Most of the larger spread betting and CFD brokers will close their markets at around 9pm on Friday and re-open them at 11pm on Sunday.

IG started offering a FTSE 100 ‘Sunday’ market in 2015. As of February 2017, IG now offer Sunday markets, 8am to 22.40pm, UK time, on:
  • chevron_rightFTSE 100
  • chevron_rightGermany 30 (DAX 30)
  • chevron_rightWall Street (Dow Jones)

How IG’s Sunday Stock Market Trading Works

The Sunday FTSE 100, DAX and Dow Jones markets that IG run are a little strange (and they come with wide spreads).

Below we focus on their FTSE 100 market but the US and German markets work the same way.

It’s key to note that IG run their normal weekday markets and Sunday markets separately to each other. In short:
  • arrow_forwardIf you have a trade on IG’s normal weekday FTSE 100 market, you cannot close it via the Sunday market.
  • arrow_forwardIf you have a trade on IG’s normal weekday FTSE 100 market, you can hedge it by opening a trade in the opposite direction on the Sunday market.
  • arrow_forwardE.g. if you have a £2/pt sell trade on IG’s normal weekday FTSE 100 market, you could hedge that by opening a £2/pt buy trade on Sunday FTSE 100 market. (This is not a perfect hedge, see below).
  • arrow_forwardIf you have a normal weekday trade and it’s still running when the market closes at around 9pm on a Friday then that will remain closed until the weekday market opens again at about 11pm on the Sunday. It will not re-open at 8am on Sunday.
  • arrow_forwardAny weekday trades are not affected by any intraday volatility that occurs during the Sunday market.
  • arrow_forwardIf you open a Sunday trade, then any position still open at 10.40pm on the Sunday is automatically rolled into the weekday market (there is no charge for this).
  • arrow_forwardIf you have Stop and/or Limit orders on your trades then the trades do not get merged on the Sunday evening. You will simply have separate open positions on UK stock market.

    E.g. Sunday positions with Stop and/or Limit orders will not be netted off against an existing weekday trade. Your week day trade will continue as normal. Your Sunday trade will be rolled in a separate week day trade with the same Stop/Limit orders. You are then left to manually adjust the trades as you see fit.
A Perfect Hedge Isn’t Easy

A Warning:
  • warningIf you have a normal weekday trade open and then you open a new Sunday trade then make sure your account is well funded. You will have 2 separate trades on different markets and naturally that will chew up some of your account balance.

    If the market is moving a lot, and it might be moving a lot, after all that’s why you are trading on a Sunday, make sure you have the funds in your account. If not, your Sunday hedge could be closed out before the day has ended.

    And if you run out of funds due to your Sunday trade then, when the main market re-opens at 11pm on Sunday, i.e. when the weekday trade is live again, you could find your weekday trade getting a margin call because of a lack of funds.
Editor’s view: I steer clear of the Sunday markets. I like the idea of the Sunday markets but it’s not a perfect hedge, the spreads are wide and the rules can be messy (this is not a criticism of IG, for issues with IG, see our IG review). In this case:
  • arrow_forwardIG are being progressive by offering these markets.
  • arrow_forwardSunday markets offer investors a way of hedging their exposure (albeit a slightly complex way, particularly when it comes to account funds and trading orders).
  • arrow_forwardThe spreads need to be wide to cover IG’s increased risks.
  • arrow_forwardThe rules need to be messy. It’s probably right to run separate normal weekday and Sunday markets.

    Let’s be fair, IG are authorised by the regulator to act as a Market Maker. However, we’d be furious if they closed one of our normal FTSE 100 trades on a Sunday because their Sunday market got a certain amount of buying or selling pressure during very light Sunday volumes.
  • arrow_forwardRolling a Sunday trade into a weekday trade is probably a good thing but it’s also understandable that it creates 2 separate weekday trades if you are using Stop and Limit orders (and you should be using Stops).

    It creates 2 separate trades rather than combining/netting them off against each other because you can’t expect the IG platform to work out where you’d want your new Stop or Limits on a combined trade. It’s a good platform, it doesn’t offer wizardry.

Sunday Stock Market Trading Spreads and Stakes

Markets open on Sundays: 8am to 10.40pm (London time):

  • chevron_rightFTSE 100 spread: 5.8pts (£2/pt min stake)
  • chevron_rightGermany 30 spread: 7pts (£2/pt min stake)
  • chevron_rightWall Street spread: 7pts (£1/pt min stake)

(Internet trading only, you can’t call IG to trade).


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