After-Hours Trading

In the United States, regular trading on major exchanges runs from 9:30 a.m. to 4:00 p.m. Eastern Time. After-hours trading typically runs from 4:00 p.m. to 8:00 p.m., and pre-market trading takes place before the open. Many brokers now offer these extended hours to retail investors.

Extended-hours trading allows investors to react to news released outside normal hours, such as company earnings announcements, which are often published after the market closes.

For example, a company might report strong quarterly results at 4:15 p.m., and its shares could rise 8% in after-hours trading before the next regular session.

After-hours trading carries extra risks. Trading volume is usually lower, so prices can be more volatile and the gap between buying and selling prices wider. Prices in after-hours trading may not reflect where the share opens the next day. Many brokers allow only limit orders outside regular hours. Some platforms have begun offering near round-the-clock trading in popular shares.