What Is After-Hours Trading?
After-hours trading in US equities runs from 4:00 PM to 8:00 PM ET, after the regular session closes at 4:00 PM. Pre-market is the corresponding session from 4:00 AM to 9:30 AM. Both sessions exist for institutional and retail traders to react to news outside regular hours.
The big difference from regular hours: drastically lower volume and wider spreads. A stock that trades 50 million shares during the day might trade a few hundred thousand after-hours. Liquidity gaps mean small orders can move price significantly. Most retail brokers limit after-hours order types (only limit orders, no market orders).
Earnings reports typically come out after-hours, leading to the largest after-hours moves of any session. A 10% after-hours move can fully reverse by the next morning's open. Treat after-hours signals with skepticism — the price discovery is incomplete until major institutional players participate at the open.
Related terms
- Earnings Report — Quarterly publication of a company's financial results.
- Gap Up — Price opening significantly higher than the prior close, leaving a 'gap' on the chart.
- Liquidity — The ease with which an asset can be bought or sold without significantly affecting its price.
- Volume