Investors have been buying US stocks after market pullbacks for nine years. These after market trades will be posted between 4:15 p.m. ET and 3:30 p.m. ET the following day. After Hours trades are traded at a higher volume than regular market hours. After-hours trades are also more liquid. Despite the increased liquidity, there are risks associated with trading after market hours. In this article, we will examine the risks associated with this practice.
Share quotations increase liquidity in the after-hours market
The after-hours market for US stocks offers investors a wide range of opportunities to profit from the sudden changes in the price of a stock. In the US, stock prices are often affected by corporate earnings announcements, which can lead to a sharp increase in market activity.
However, this activity is not as predictable as that of the regular market. Share quotations show the market’s reaction to new …