After-Hours Trading

After-hours trading takes place from 4:00 p.m. EST to 8:00 p.m. EST after the market's regular trading hours.
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The majority of trading activity in the U.S. stock market occurs during regular trading hours, from 9:30 a.m. EST until 4:00 p.m. EST. However, most major brokerage firms facilitate after-hours trading for retail and institutional investors.

After-hours trading takes place from 4:00 p.m. EST to 8:00 p.m. EST.

Trading outside of regular hours is handled through electronic communication networks, or ECNs. ECNs allow traders to participate directly with one another while the exchanges are closed.

After-hours trading carries more risk, as less volume creates illiquid markets and wider bid-ask spreads, but also allows investors to take advantage of unique opportunities after the market closes. After-hours trading activity is greatest around events such as corporate earnings announcements.

Extended hours overnight trading is available through some brokerage firms in major ETFs for near-continuous trading.

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FAQs

How does the after-hours market work?

Trading outside of regular hours is handled through electronic communication networks, or ECNs. ECNs allow traders to participate directly with one another while the exchanges are closed. The majority of trading activity in the U.S. stock market occurs during regular trading hours, from 9:30 a.m. EST until 4:00 p.m. EST.

However, most major brokerage firms facilitate after-hours trading for retail and institutional investors. After-hours trading takes place from 4:00 p.m. EST to 8:00 p.m. EST. 

Why do stocks spike after hours?

There are multiple reasons a stock may experience price changes after hours. Earnings reports are often released after the regular market hours end and may impact a stock’s price as investors react to financial statements and future guidance. News events and significant announcements can also impact stock prices and may occur after hours. 

Does after-hours trading affect the opening price?

After-hours trading can impact the opening price of a stock. The overnight market activity may influence the price up or down, resulting in a price gap above or below the previous close.

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