What Is the Best Time to Buy and Sell Shares? Australia Guide 2026

There is no single “best” time to buy or sell shares, but certain times of the trading day can offer higher liquidity, greater volatility or better trading opportunities depending on your strategy.

As a general guide, different periods of the trading session may suit different types of traders:

For Australian investors, the timing of the ASX trading session matters, particularly for traders who rely on short-term price movements. The ASX operates through several stages, including the opening auction, normal trading and closing auction, with normal trading generally taking place from around 10:00am to 4:00pm Sydney time.

In this guide, we explain the best time to buy and sell shares in Australia, how ASX trading hours work, which parts of the trading day may offer greater activity, and what Australian investors should consider before making a trade.

The ASX cash market operates through several distinct phases. According to ASX, orders can be entered during the pre-open period, while actual continuous matching takes place during normal trading. The opening and closing prices are determined through separate auction processes.

ASX Trading Hours at a Glance 

* Times are based on Sydney time, and some auction transitions occur within randomised windows. ASX notes that the opening auction occurs within a randomised 15-second window, while the closing auction begins within a randomised 30-second window. 

So, what is the best time of day to buy shares?

There is no fixed answer, but different parts of the ASX trading session have different characteristics.

1. At the Market Open

Around 10:00am Sydney time

The market open can be one of the most interesting periods for active traders.

Prices may react rapidly to information released while the ASX was closed, including:

• US market movements

• overnight commodity prices

• company announcements

• economic data

• changes in AUD exchange rates

• global risk sentiment

This can result in significant volatility.

For traders who use momentum or breakout strategies, the opening period may provide more opportunities. However, the same volatility can increase the risk of entering a position based on a temporary price move.

Best suited to: experienced short-term traders who understand opening volatility.

Potential drawback: rapid price movements can lead to poor execution or impulsive decisions.

2. Late Morning

Approximately 10:30am–12:00pm

After the initial market reaction, some of the volatility surrounding the open may begin to settle.

This can give traders more time to assess whether the opening move is supported by broader market participation.

For example, a share that jumps sharply at the open may either continue higher if buying interest remains strong or retrace if the initial move was driven by short-term order flow.

For longer-term investors, this period can also provide a calmer environment for evaluating whether a price movement represents a genuine change in the company's outlook.

Best suited to: traders who prefer to avoid the most volatile part of the opening session.

3. Around Midday

Approximately 12:00pm–2:00pm

The middle of the trading session can sometimes be quieter than the opening and closing periods.

This does not mean that nothing happens.

Unexpected announcements, changes in commodity prices or movements in overseas markets can still trigger significant moves.

For some traders, however, lower activity can mean fewer short-term opportunities.

For investors focused on fundamentals rather than intraday price movements, the exact time of the midday session is generally less important.

Best suited to: investors and traders who prefer a potentially calmer trading environment.

4. The Afternoon Session

Approximately 2:00pm–4:00pm

Trading activity can increase again as the ASX approaches its close.

Australian investors also have more information available by this point in the session, including developments from the domestic market and movements in global markets.

For traders, the afternoon can be useful for assessing whether the day's trend is strengthening or reversing.

For example:

If a stock has remained above its opening price for most of the session while trading volume continues to increase, traders may interpret that as stronger buying interest.

However, technical signals should not be treated as guarantees of future price movements.

Best suited to: swing traders and active traders monitoring trend continuation or reversals.

5. Near the Market Close

The period approaching the ASX close can be particularly important because the market moves toward its closing auction.

The closing auction establishes the closing price after continuous trading ends.

Some traders pay close attention to this period because:

• daily trends become clearer

• end-of-day positioning can increase

• liquidity can change

• benchmark-related activity can influence prices

• investors assess positions before the next trading session

However, buying simply because a share has fallen toward the close is not necessarily a sound strategy.

A late-day price decline could represent a temporary move—or reflect new information about the company or broader market.

The best time of day to sell shares depends on your investment strategy, the reason for selling and current market conditions.

For long-term investors, the exact hour of the sale is usually less important than whether the investment thesis has changed, the valuation remains attractive and the portfolio still matches your objectives.

For short-term traders, however, the time of day can have a greater impact because liquidity, volatility and order flow can change throughout the ASX trading session.

Selling at the Market Open

The ASX market open can produce significant price movements as investors react to overnight developments and new information.

A share may open substantially higher or lower than its previous closing price following:

• Company announcements

• US market movements

• Commodity price changes

• Economic data

• Analyst upgrades or downgrades

• Changes in investor sentiment

For traders looking to exit a position after a strong overnight move, the opening session can provide substantial liquidity.

However, selling immediately after a sharp price increase can also mean selling into temporary volatility.

Selling During the Afternoon

The afternoon session can be useful for investors who want to assess how the market has responded to news throughout the day.

By this point, traders have more information about:

• The broader ASX trend

• Sector performance

• Commodity prices

• AUD movements

• Overseas market developments

• Company-specific news

This can help investors make a more informed decision than simply reacting to the first price movement after the open.

Selling Near the Market Close

The final part of the ASX trading session is another important period for active traders.

The continuous trading session ends at 4:00pm Sydney time, followed by the pre-close period and the Closing Single Price Auction. The closing auction establishes the official closing price.

Some investors may prefer executing trades earlier rather than waiting for the closing auction, particularly if the share is experiencing unusually high volatility.

The key takeaway is that there is no guaranteed best time to sell shares. The right decision should depend on your investment thesis, valuation, risk tolerance and trading plan.

Best Time to Buy vs Sell Shares 

Traders who focus on short-term opportunities need to monitor both the ASX and global markets because Australian shares can react to developments that occur outside local trading hours. 

Different investment strategies can make different parts of the trading session more relevant.

Long-Term Investing

Long-term investors generally should not focus excessively on intraday timing.

Instead, consider:

• Business quality

• Valuation

• Earnings growth

• Balance-sheet strength

• Industry outlook

• Dividend policy

• Long-term competitive advantages

For this type of investor, trying to identify the exact bottom of a share price can be less important than maintaining a disciplined investment strategy.

Swing Trading

Swing traders typically hold positions for several days or weeks.

They may focus on:

• Price trends

• Support and resistance

• Trading volume

• Moving averages

• Market momentum

• Company catalysts

The market open can be useful for identifying gaps and momentum, while the afternoon can help traders determine whether the day's trend is being sustained.

Day Trading

Day traders are more sensitive to the timing of the trading session.

They may look for opportunities around:

• Market open

• Major economic announcements

• Company announcements

• Breakouts

• Reversals

• Increased trading volume

• Market close

However, greater volatility also increases the potential for rapid losses.

Day trading should therefore be approached with a clearly defined risk-management strategy rather than simply seeking the most volatile period of the day.

CFD Trading

CFDs are different from traditional share investing because traders speculate on the price movement of an underlying asset rather than acquiring ownership of the underlying shares.

Traditional share investing is generally more suitable for investors who want to own part of a company and potentially benefit from capital growth and dividends.

Share CFDs are designed for traders who want exposure to price movements without owning the underlying shares.

The difference becomes particularly important when discussing the best time to trade.

A long-term investor may be comfortable holding through short-term volatility. A CFD trader may instead focus on shorter-term movements and may use both long and short positions.

For example:

• A bullish trader may open a long position.

• A bearish trader may open a short position.

• A short-term trader may focus on intraday price movements.

• A longer-term trader may use CFDs for hedging or directional exposure.

However, CFDs are leveraged products and involve significant risk. ASIC's retail CFD framework includes leverage limits, margin close-out requirements and negative-balance protection. For share CFDs, the maximum retail leverage is 5:1 under the current intervention framework.

Want to Trade Share Price Movements?

If your strategy focuses on short-term price movements rather than owning the underlying shares, share CFDs may provide access to both long and short positions.

Before trading, make sure you understand leverage, margin requirements, spreads, financing costs and the risks associated with CFD trading.

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The time of day you sell a share generally does not determine how much Capital Gains Tax you owe.

Instead, Australian tax treatment depends on factors such as:

• Your purchase price

• Sale proceeds

• Transaction costs

• Whether you are an investor or trader

• How long you held the asset

• Whether capital losses can be applied

• Your individual tax circumstances

For eligible individuals, the CGT discount can generally apply where an asset has been owned for at least 12 months, subject to the relevant rules. The ATO states that the discount method can reduce an eligible individual's capital gain by 50%.

For example, holding a share for 11 months versus 13 months may have different tax consequences if the relevant CGT discount requirements are satisfied.

However, investors should not hold or sell an asset solely because of the potential tax treatment. Tax outcomes depend on individual circumstances.

If you are unsure how CGT applies to your share transactions, consider obtaining advice from a registered tax professional or reviewing the latest guidance from the Australian Taxation Office.

What is the best time to buy shares?

There is no universally best time. Long-term investors should generally focus more on valuation, company fundamentals and investment objectives than on the exact hour of purchase.

What is the best time to sell shares?

The best time to sell depends on your investment thesis, valuation, risk management and financial objectives. A rising or falling price alone is not necessarily a reason to sell.

What is the best time of day to buy stocks?

The market open can provide greater volatility and liquidity, while later sessions may provide more time to assess market developments. Neither is guaranteed to produce better returns.

What is the best time to trade ASX shares?

For active traders, the market open and the period approaching the close can offer increased activity. However, greater volatility also means greater risk.

Should I buy shares when the market opens?

Not necessarily. The opening session can be volatile because investors are reacting to overnight developments. Waiting for the initial move to develop may be preferable for some strategies.

Is it better to buy shares in the morning or afternoon?

There is no universal answer. Morning trading may suit active traders looking for volatility, while afternoon trading may suit investors who prefer more time to assess the day's developments.

What time does the ASX open?

The ASX cash market's opening process begins around 9:59am Sydney time, with normal trading beginning around 9:59:45am within a randomised window. The market's normal trading session runs until 4:00pm.

What time does the ASX close?

Continuous trading ends at 4:00pm Sydney time, followed by the pre-close period and closing auction. The Closing Single Price Auction occurs around 4:10pm.

What is the best time to buy ASX shares?

It depends on your strategy. Long-term investors should generally prioritise valuation and fundamentals, while short-term traders may pay more attention to liquidity, volatility and market catalysts.

Is share CFD trading different from buying shares?

Yes. Buying shares gives you ownership of the underlying company, while a share CFD provides exposure to price movements without owning the underlying shares. CFDs can also allow short positions, but they are leveraged and carry a higher level of risk.

Want to Trade Australian Share Price Movements?

* CFDs are leveraged products and carry a high level of risk. Consider whether CFD trading is appropriate for you and read the relevant Product Disclosure Statement before trading.

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