Understanding After Hours Trading

When the stock market is closed during the day, dealers and investors still have the opportunity to participate in what is known as after-hours trading. An investor may be prompted to buy or sell shares as a result of certain news, such as an income statement. The after-hours trading session starts at 16:00 and lasts until approximately 20:00. During non-working hours, the liquidity of shares decreases. When trading occurs outside business hours, the spread between the buy price and the sell price may be larger during normal business hours. During non-working hours, the spread is often quite significant. The difference between the price at which something is bought and the price at which it is sold is called the spread. It is possible that the gap will be significantly larger than during the normal trading session, because there will be fewer transactions with shares. More information see here "when is after hours trading"

Understanding After Hours Trading

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