Back to Articles Beginner

Pre-Market and After-Hours Trading

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

RiverLabs
5 min read
17 views

Video Lesson

Prefer watching? This video covers the key concepts from this article.

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
Sign in to track progress

Related Articles

Mutual Funds Explained: Active vs Passive and When to Use Each

Mutual funds pool investor money into diversified portfolios. Learn the difference between active and passive funds and how to choose the right one.

Read more →

Inflation and Investing: Protect Your Portfolio's Purchasing Power

Inflation silently erodes wealth. Learn how different asset classes respond to inflation and how to build a portfolio that stays ahead of rising prices.

Read more →

Asset Allocation by Age: The Glide Path to Retirement

Your asset allocation should change as you age. Learn the glide path concept, the 100-minus-age rule, and how target date funds automate the process.

Read more →