What is Extended Hours Trading?
Extended hours trading is trading that occurs outside of regular trading hours.
Regular trading hours for stock exchanges in the U.S. are M-F from 9:30 AM to 4:00 PM (EST) with the exception of market holidays. Extended hours trading occurs outside those hours – from 4:00 AM – 9:30 AM (EST) for pre-market and 4:00 PM – 8:00 PM (EST) for after hours trading.
While Extended Hours Trading allows greater flexibility for your trading, there are additional risks that investors should be aware of. When compared to regular trading hours, Extended Hours typically have lower liquidity, with lower likelihood of order execution with larger spreads and uncertain prices. It is possible your order may be partially filled, or not at all executed, even if your limit price is met or exceeded.
For more information regarding the risks associated with Extended Hours Trading, please see our 'What are the risks of Extended Hours Trading' FAQ