Occasionally, though, after-hours stock movements driven by an after-market earnings release will reverse themselves during that company's conference call the next morning. Especially if a stock moves by a material amount on high volume after-hours, that movement is likely to carry forward to the regular market session the next day. How Trading After-Hours Affects the Opening PriceĪfter-hours trading often has an impact on the opening price for a stock at the beginning of the next regular market session. However, they also allow institutional investors to trade anonymously (like dark pool trading), preventing other investors from seeing who is buying and selling what.Īfter-hours trading is most important when news is released after the closing bell, causing investors to buy or sell a company's stock. ECNs match sellers with buyers, enabling retail investors to interact with each other electronically. Institutional investors were the primary participants in after-hours trading until the middle of 1999. Volumes are usually low after the market closes unless there is some sort of catalyst that occurs after the closing bell, such as the release of an earnings report. How After-Hours Trading WorksĪfter-hours trading occurs via electronic communications networks ((ECNs)) rather than stock exchanges. Pre-market trading can start as early as 4 a.m., although usually, it starts closer to 8 a.m. EST, although it can go as late as 8 p.m., depending on which brokerage is used. Tip: After-hours trading usually takes place between 4 p.m. However, volumes can spike suddenly after hours when important news, such as earnings, is released after the closing bell. ![]() ![]() The trading that occurs prior to opening of a new session for the stock exchange can also be called pre-market trading.Īfter-hours trading is rarely used because most traders are active during the market's business hours. Electronic communications networks handle after-hours trading, pairing sellers with buyers instead of through a stock exchange. EST, and between 8:30 am EST and 9:30 a.m. Most after-hours trading volume occurs on market days between the hours of 4 p.m. Miniseries/E+ via Getty Images What Is After-Hours Trading?Īfter-hours trading is any trading that occurs outside of normal stock market opening and closing hours.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |