Online trading after hours
Stock Market is open for business for six-and-a-half hours—from 9: ET—nearly every business day, and it draws crowds of thousands upon thousands of investors as soon as the opening bell rings. Wall Street is crowded during normal trading hours, but online trading after hours investors are finding a less crowded online trading after hours to trade in: As its name suggests, after-hours stock trading occurs after the regular stock market hours—9: After-hours stock trading takes place between the hours of 4: The intrinsic value of a stock is constantly moving whether the market is open or not, and people want to access the market when the intrinsic value is changing.
As its name suggests, pre-market stock trading occurs before the stock market opens up for its regular hours of trading at 9: Pre-market stock trading takes place between the hours of online trading after hours Investors like to trade in the pre-market session for the same reason they like to trade in the after-hours trading session…they want to get a leg up on the competition by reacting quickly to news announcements that occur when the regular market is closed.
All investing involves risk, but the Securities and Exchange Commission SEC outlines the online trading after hours eight risks that are specifically associated with trading in the after-hours and pre-market sessions:. Some firms only allow investors to view quotes from the one trading system the firm uses for after-hours trading. Check with your broker to see which firms quotes you will be able to online trading after hours and off of which quotes you will be able to trade.
During regular trading hours, buyers and sellers of most stocks can trade readily with one another. During after-hours, there may be less trading volume for some stocks, making it more difficult to execute some of your trades. Less trading activity could also mean wider spreads between the bid and ask prices. As a result, you may find it online trading after hours difficult to get your order executed or to get as favorable a price as you could have during regular market hours.
For stocks with limited trading activity, you may find greater price fluctuations than you would have seen during regular trading hours. The prices of some stocks traded during the after-hours session may not reflect the prices of those stocks during regular hours, either at the end of the regular trading session or upon the opening of regular trading the next business day. This means that even if a stock price rises in after-hours trading, it may online trading after hours right back down when regular trading opens again and the rest of the market gets to cast its vote on the price of the stock.
Many electronic trading systems currently accept only limit orders in the pre-market online trading after hours after-hours sessions. Limit orders may cause you to miss out on having a trade filled.
As with online trading, you may encounter during after-hours delays or online trading after hours in getting your order executed, including orders to cancel or change your trades. Just remember that there are additional risks you need to be aware of. The materials presented are being provided to you for educational purposes only.
The content was created and is being presented by employees or representatives of Learning Markets, LLC. The information presented or discussed is not a recommendation or an offer of, or solicitation of an offer by Online trading after hours Markets or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives.
Online trading after hours Markets and its affiliates online trading after hours not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy. Any specific securities, or types of securities, used as examples are for demonstration purposes only. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.
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