After-hours Trading

After-hours trading refers to the buying and selling of securities on major exchanges outside the regular trading hours of the market. Standard market hours for most U.S. exchanges, such as the New York Stock Exchange (NYSE) and the Nasdaq, typically run from 9:30 AM to 4:00 PM Eastern Time. After-hours trading allows investors to trade stocks after the market has closed for the day, typically from 4:00 PM to 8:00 PM Eastern Time.

This type of trading can provide opportunities for investors to react to news and events that occur outside of normal trading hours, such as earnings releases or economic data reports. However, after-hours trading often comes with lower liquidity, wider bid-ask spreads, and greater volatility, which can increase the risk of executing trades at unfavorable prices. Consequently, it is generally recommended for experienced traders or institutional investors who understand the complexities involved.