5 basic knowledge you must master

1. The code of US and Hong Kong stocks

US stock code

The code system of the stock market is different to a certain extent, and the code system of the US stock market is generally formulated by the listed company itself, which can be two, three letters, or four or five letters.

The stock code of a listed company is highly recognizable. In daily transactions, you may find that the US stock code is generally accompanied by a suffix letter, where the letters N and O represent which exchange it is listed on. N stands for stocks listed on the New York Stock Exchange, and O stands for stocks listed on the NASDAQ exchange. There is also a less common suffix letter A, which represents stocks listed on American stock exchanges.

Hong Kong stock code

Hong Kong stocks refer to stocks listed on the Hong Kong Stock Exchange of the Hong Kong Special Administrative Region of the People’s Republic of China. Hong Kong’s stock market is more mature and rational than that of the mainland, and it is sensitive to global market conditions. If mainland stocks are listed in both the mainland and Hong Kong, an “A+H” model is formed, and the trend of A shares can be judged based on its status in the Hong Kong stock market.

Stock suffix -B, stocks with B suffix refer to biotechnology, pharmaceutical and medical related companies that have no profit or even no revenue. -S, stocks with S suffix, refer to companies that are listed on the Hong Kong stock market for the second time, mainly companies whose primary listing place is the U.S. stock market. -W, the stock with the suffix W, refers to the company with the same share but different rights. In the early stage of many companies, the founding team set up such a special stock + common stock structure in order to raise funds without losing control. Special stock and common stock The face value is the same, and the rights to dividends are the same, but when the founding team makes a major decision on the company, one vote of the special stock in their hands is equivalent to several votes of the common stock.

2. Trading units of US and Hong Kong stocks

US stock trading units

The trading unit in the U.S. stock market is a share. The trading unit of U.S. stocks is different from that of Hong Kong stocks. The minimum trading unit of U.S. stocks is 1 share, which means that you can trade hundreds or thousands of shares in the U.S. stock market, depending on your capital.

HK stock trading unit

Hong Kong stocks are traded in lots, with a minimum of 1 lot. However, a lot of Hong Kong stocks is not fixed at 100 shares, but is determined by the listed company itself, and the number of shares in a lot can be changed at a later stage. Most of the lots are 100~ 10000 shares.

3. Trading hours of US and Hong Kong stocks

US stock trading hours

Unlike the trading hours of other stock markets, the trading hours of U.S. stocks are relatively long, theoretically more than 16 hours, because U.S. stocks have a long time before and after the market.

(1) Continuous trading session

The continuous trading hours of U.S. stocks are U.S. Eastern Time: Monday to Friday 09:30 - 16:00. Please note: due to the winter and summer saving system in the United States, the corresponding Hong Kong time will be different. US Summer Time (March to November): 21:30 - 04:00 Hong Kong Time; Winter Time (November to March): 22:30 - 05:00 Hong Kong Time.

(2) Pre-market and after-market trading

U.S. stocks can be traded before and after the market outside the continuous trading period, and the orders placed before and after the market will be submitted to the exchange for matching. Nasdaq has special pre-market and after-market trading sessions, and each brokerage has different requirements for pre-market and after-market trading sessions.

Pre-market trading hours for U.S. stocks: 04:00 - 09:30 (Eastern Time); 16:00 - 21:30 Hong Kong time during summer time, 17:00 - 22:30 Hong Kong time during winter time.

U.S. after-hours trading hours: 16:00 - 20:00 (Eastern Time); 04:00 - 08:00 Hong Kong time during summer time, 05:00 - 09:00 Hong Kong time during winter time.

Half-day after-hours trading hours for U.S. stocks: 13:00 - 17:00 (Eastern Time); 01:00 - 05:00 Hong Kong time during summer time, 02:00 - 06:00 Hong Kong time during winter time.

Hong Kong Stock Trading Hours

Morning auction 9:00-9:20

Normal trading 9:30-12:00 13:00-16:00

Closing auction 16:00-16:10

4. Limits on the rise and fall of US and Hong Kong stocks

U.S. stocks rise and fall

In U.S. stock trading, there is no price limit. We often see some stocks with a daily increase of more than 50%, and of course we can also see stocks with a decline of more than 50%, so investors need to pay attention to these situations. Many investors think that speculating in U.S. stocks is very cool. It can rise by more than 10% in one day. It is very common for stocks to jump by more than 20% in many earnings seasons. In short, these warnings should not be ignored. Investors need to do their homework on these companies and realize Potential up and down fluctuations, if the stock fluctuates too violently, it may trigger a suspension of trading, commonly known as “circuit breaker”.

Hong Kong stocks rise and fall

There is no price limit for all stocks in Hong Kong stocks. At present, the Shanghai Science and Technology Innovation Board and the Shenzhen Growth Enterprise Market only have no price limit for the first 5 days of listing of new stocks.

5. The settlement system of US and Hong Kong stocks

US stock settlement system

In US stock trading, you must know two basic systems, the T+3 delivery system and the T+0 trading system.

The T+3 delivery system refers to the fact that buyers and sellers pay money and deliver goods through the settlement system. Before T+3 (T is the trading day), you cannot withdraw cash, physical stocks, and transfer custody of purchased shares, that is, fund delivery. It will be available on the 3rd working day. This means that if you redeem all the stocks, the funds will need to wait for 3 trading days before they can be withdrawn.

The T+0 trading system is what we often call intraday trading, that is, the stocks bought on the same day can be sold on the same day, but the T+0 trading system is a double-edged sword, which not only facilitates transactions, but also increases the risk of frequent transactions. related risks.

Hong Kong stock settlement system

Hong Kong stock trading mechanism, T+0 system, that is, trading can be reversed on the same day. Investors buy stocks on the same day. If they find that they are in the wrong direction, they can sell them immediately to reduce losses, and vice versa.