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Buying and selling stocks outside normal market hours. More risk, less liquidity.
Why It Matters
After-hours trading lets you react to news immediately - like earnings releases at 4:05 PM. But it's a different game: fewer traders mean wider bid-ask spreads, more volatile prices, and your orders may not fill at expected prices. Most brokers now offer extended hours, but use limit orders and be cautious. Big swings after-hours often reverse by morning.
Key Points
- After-hours: 4-8 PM Eastern. Pre-market: 4-9:30 AM Eastern (varies by broker)
- Use limit orders only - market orders can fill at terrible prices due to low liquidity
- Prices you see after-hours may not reflect where the stock opens the next morning
Related Terms
Common Questions
Buying and selling stocks outside normal market hours. More risk, less liquidity. After-hours trading lets you react to news immediately - like earnings releases at 4:05 PM. But it's a different game: fewer traders mean wider bid-ask spreads, more volatile prices, and your orders may not fill at expected prices.
After-hours trading lets you react to news immediately - like earnings releases at 4:05 PM. But it's a different game: fewer traders mean wider bid-ask spreads, more volatile prices, and your orders may not fill at expected prices. Most brokers now offer extended hours, but use limit orders and be cautious. Big swings after-hours often reverse by morning.
After-hours: 4-8 PM Eastern. Pre-market: 4-9:30 AM Eastern (varies by broker)
Use limit orders only - market orders can fill at terrible prices due to low liquidity
Prices you see after-hours may not reflect where the stock opens the next morning