After-Hours and Pre-Market Trading Details
The U.S. stock market is open for trading during the weekday (minus federal and other market holidays) from 9:30 am until 4:00 pm, Eastern Standard Time. Occasionally, a market day will close early at 1:00 pm. Usually, this happens the day before a major holiday.
But of course, some traders will want to trade outside of these hours. And the stock exchanges oblige them. Known as extended-hours trading, these sessions are perfectly legal and possible.
Extended-hours trading takes place on ECNs (Electronic Communications Networks) and can be divided into pre-market and after-hours sessions. Some brokers offer both periods, while others offer just one. Still other firms offer neither.
Unlike the regular day session, the hours of pre-market and after-hours trading can vary from broker to broker. Take a look at the table above to see the variation.
Not surprisingly, extended-hours trading is not for the faint of heart and should be attempted only by experienced traders.
Risks of Extended-Hours Trading
For the best extended-hours trading experience, it is imperative that you know the hazards involved.
One risk is the lower volume of trading during pre-market and after-hours trading. Because there’s lower volume, bid and ask prices tend to be farther from each other. This means securities are more expensive to buy, and selling prices are lower. This can result in fill prices that are as much as 3% from comparable prices during the day session.
Another risk is that limit orders may not get filled during extended hours because there aren’t as many traders participating during these times. Or a limit order may get partially filled.
Volatility tends to be higher during the late night and early morning sessions as well. Prices can move more quickly, so you need to be prepared for instability.
Orders that are tagged for extended hours only may not be eligible for execution during the day session. Check with your investment firm and verify its exact policy before submitting an order.
Advantages of Extended-Hours Trading
With all the pitfalls associated with extended-hours trading, why would anyone want to try it? Well, there are some notable benefits.
For instance, U.S. companies report earnings before the opening bell or after the closing bell. These earnings reports often cause stock prices to move—significantly sometimes. If you want to get in on these price movements, you have to be in extended hours. The same situation is true with the government’s release of economic data.
Events around the world can impact the stock market, too. These of course can happen outside the regular New York session.
Fees of Extended-Hours Trading
Although most brokerage firms have switched to zero-commission trading, extended-hours trades may in some cases incur additional fees. Be sure to look over your firm’s pricing schedule and ask any questions if the plan is not clear.
Updated on 5/22/2025.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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