Some stocks don’t trade at all in the after-hours session. If you follow financial news, you might notice that after-hours stock quotes are often different than the closing prices of stocks during regular market hours. This is due to investor activity in the after-hours trading market.
What is after hours trading in the stock market?
After hours trading begins immediately after the stock market closes its regular session and ends four hours later. Not all stocks are eligible for after hours trading. The after hours market can be more volatile as fewer buyers and sellers participate compared to the regular trading session.
Why do stocks move after hours?
Stocks move after hours because many brokerages allow traders to place trades outside of normal market hours. Every trade has the potential to move the price, regardless of when the trade takes place. However, with fewer active traders, there are typically wider spreads that make after-hours price movement more volatile and less consistent.
