Extended-hours trading

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Not to be confused with Late trading.

Extended-hours trading is stock trading that happens either before or after the normal trading hours of a stock exchange, i.e., pre-market trading or after-hours trading.

Since 1985, the regular trading hours for major exchanges in the United States, such as the New York Stock Exchange and the Nasdaq Stock Market, have been from 9:30 a.m. to 4:00 p.m. Eastern Time (ET).[1] Pre-market trading occurs from 4:00 a.m. to 9:30 a.m. ET, although the majority of the volume and liquidity come to the pre-market at 8:00AM ET.[2][3] After-hours trading on a day with a normal session occurs from 4:00 p.m. to 8:00 p.m. ET.[3] Market makers and specialists generally do not participate in after hours trading, which can limit liquidity.[4]

Example chart of extended hours trading, via Google Finance

Trading outside regular hours is not a new phenomenon but used to be limited to high-net-worth investors and institutional investors like mutual funds.[5] The emergence of private trading systems, known as electronic communication networks (ECNs), has allowed individual investors to participate in after-hours trading.

Financial Industry Regulatory Authority (FINRA) members who voluntarily enter quotations during the after-hours session are required to comply with all applicable limit order protection and display rules (e.g., the Manning Rule and the U.S. Securities and Exchange Commission order handling rules).[6]

See also[edit]


  1. ^ "About Us: History". NYSE. Retrieved 2007-04-11. 
  2. ^ "Pre-Market Trading". Investors Underground. Retrieved 11 November 2016. 
  3. ^ a b "Nasdaq Trading Schedule". NASDAQ. Retrieved 2011-08-02. 
  4. ^ "After Hours Trading". Investors Underground. Retrieved 11 November 2016. 
  5. ^ "SEC.gov". United States Securities and Exchange Commission. 
  6. ^ Barclay, Michael J. (2003). "Price Discovery and Trading After Hours". University of California, Berkeley. 

External links[edit]

 This article incorporates public domain material from the United States Government document "http://www.sec.gov/investor/pubs/afterhours.htm".