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Pre-Market and After-Hours Trading

Understand extended hours trading, its risks and benefits, and when you might want to use it.

RiverLabs
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Pre-Market and After-Hours Trading

Extended hours trading allows you to buy and sell stocks outside regular market hours (9:30 AM - 4:00 PM Eastern).

Regular Market Hours

  • NYSE and NASDAQ: 9:30 AM to 4:00 PM Eastern
  • Most trading activity occurs here
  • Best liquidity and tightest spreads

Pre-Market Trading

  • Starts as early as 4:00 AM Eastern
  • Most brokers allow from 7:00 AM
  • Lower volume than regular hours
  • Used to react to overnight news

After-Hours Trading

  • Runs from 4:00 PM to 8:00 PM Eastern
  • Volume drops after 6:00 PM
  • Many companies release earnings here

Risks of Extended Hours

  • Much lower liquidity
  • Wider bid-ask spreads
  • Higher volatility and price gaps
  • Limit orders only, no market orders

Best Practices

  1. Always use limit orders
  2. Expect wider spreads
  3. Don't chase big moves
  4. Watch for price gaps at open
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