How Many Trading Days Are There in a Typical Year?
Gain insight into how the annual number of trading days in financial markets is determined, accounting for market closures.
A trading day is the period when financial markets are open for business, allowing investors to buy and sell securities. Understanding trading days is important for market participants, as they dictate when transactions occur and market data is generated. This article explains how the number of trading days in a year is determined and the factors that influence this count.
Typical Number of Trading Days Annually
Major U.S. stock exchanges, such as the New York Stock Exchange (NYSE) and Nasdaq, typically have 250 to 252 trading days each year. This figure is derived by taking the total number of calendar days in a year, which is 365 or 366 in a leap year, and subtracting days when the markets are closed. The calculation primarily accounts for weekends and observed holidays. For example, a year with 365 days, subtracting around 104 weekend days and about 10 holidays, results in approximately 251 trading days. This consistent number helps market participants forecast trading activity and plan their investment strategies.
How Non-Trading Days Are Determined
The standard market schedule designates Saturdays and Sundays as non-trading days, accounting for approximately 104 days annually when markets are closed. These non-trading days provide a consistent break for market operations and participants. In addition to weekends, major U.S. stock exchanges observe several public holidays throughout the year. These holidays generally align with federal observances.
The holidays observed by the NYSE and Nasdaq include:
New Year’s Day
Martin Luther King Jr. Day
Presidents’ Day
Good Friday
Memorial Day
Juneteenth National Independence Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Day
If a holiday falls on a weekend, the market observes it on an adjacent weekday. For instance, if a holiday occurs on a Saturday, the market will close on the preceding Friday. Conversely, if a holiday falls on a Sunday, the market closes on the following Monday.
Variations in Trading Schedules
While most trading days involve full operating hours, stock exchanges occasionally have “half-days” or early closures. Trading concludes at 1:00 p.m. ET instead of the usual 4:00 p.m. ET on these days. These abbreviated sessions commonly occur on days preceding or following major holidays, such as the day before Independence Day (July 3), the day after Thanksgiving, and Christmas Eve. These early closures allow market participants to prepare for extended breaks.
Bond markets have a different holiday schedule than stock markets. They may observe additional holidays, such as Columbus Day and Veterans Day, when stock markets remain open. Bond markets also often have different early closure times or additional early closure days, sometimes closing at 2:00 p.m. ET. International financial markets operate under their own distinct holiday calendars and trading hours, which differ significantly from those in the United States.