The regular US stock market session runs from 9:30 a.m. to 4:00 p.m. Eastern Time on weekdays. But trading doesn't fully stop outside those hours. Extended-hours trading lets investors buy and sell before the open and after the close.
Extended trading hours
- Pre-market: typically from 4:00 a.m. to 9:30 a.m. ET.
- After-hours: typically from 4:00 p.m. to 8:00 p.m. ET.
Exact hours depend on your broker. Many limit extended-hours trading to a shorter window, and some now offer overnight trading in selected stocks and ETFs.
Why prices move outside regular hours
Much important news is released outside market hours on purpose, so investors have time to digest it. Most companies report earnings before the open or after the close, and economic data, mergers and other announcements often land early in the morning. Extended-hours trading is where the first reaction shows up.
The risks
- Low volume: far fewer people trade, so it can be harder to get your order filled.
- Wide bid-ask spreads: the gap between buying and selling prices is often much larger, which costs you money on each trade.
- Big price swings: with fewer orders, prices can jump on relatively small trades.
- Prices may not hold: a big after-hours move can shrink or reverse when the regular session opens and volume returns.
- Competition with professionals: institutional traders with more information are active in these sessions.
How to trade safely in extended hours
- Use limit orders. Most brokers only accept limit orders outside regular hours, and you should always use them. See market vs. limit orders.
- Check the spread before placing an order.
- Trade smaller sizes.
- Don't chase news. Long-term investors rarely need to act before the regular session opens.
Reading pre-market moves
Pre-market prices and index futures give an early sense of how the market may open, but they can be misleading because so few shares trade. Wait for the regular session for a fuller picture. Track the day's biggest movers on the StockEngine home page and catch up on headlines in market news.
This article is educational and not investment advice.
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