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What is the Closing Bell?

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What is the Closing Bell?

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In a stock exchange, the closing bell is a signal that the trading session for the day has ended, and that all of the traders of the floor must cease doing business until a new session is reopened. It is often used metaphorically to refer to the end of a business day. Not every stock exchange specifically uses a bell to signal the end of daily trading, but the term is fairly universally understood in the financial world. In stock exchanges which still use a bell to signal the end of the trading day, an opening bell is also rung at the beginning of the day to indicate that the stock exchange is open for business. The floor of a stock exchange can sometimes get extremely chaotic, especially when the market is in wild fluctuation. The use of a loud signal such as the closing bell ensures that all traders stop doing business simultaneously. When a financial market is heated, doing business after the close of the day could be turned to a trader’s advantage, if he or she can get away with it

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