The U.S. Stock Market is open for business for six-and-a-half hours---from 9:30 a.m to 4:00 p.m. ET---nearly every business day, and it draws crowds of thousands upon thousands of investors as soon as the opening bell rings. Wall Street is crowded during normal trading hours, but some investors are finding a less crowded space to trade in: the pre-market and after-hours stock trading sessions.
That's right...you can actually trade before the market opens in the morning, and you can keep on trading once the market has closed in the afternoon. Of course, the playing field is a little different during off-market trading hours than it is when the full stock market is open, but we'll cover that.
After-Hours Stock Trading
As its name suggests, after-hours stock trading occurs after the regular stock market hours---9:30 a.m to 4:00 p.m. ET---are over. After-hours stock trading takes place between the hours of 4:00 to 6:30 p.m. ET.
But why would you want to trade stocks in the after-hours trading session?
According to Chris Concannon, an executive VP in the Transaction Services Group at NASDAQ, "Many companies report earnings either before the market opens or after the market closes. The intrinsic value of a stock is constantly moving whether the market is open or not, and people want to access the market when the intrinsic value is changing."
Pre-Market Stock Trading
As its name suggests, pre-market stock trading occurs before the stock market opens up for its regular hours of trading at 9:30 a.m ET. Pre-market stock trading takes place between the hours of 8:00 to 9:30 a.m. ET.
Investors like to trade in the pre-market session for the same reason they like to trade in the after-hours trading session...they want to get a leg up on the competition by reacting quickly to news announcements that occur when the regular market is closed.
how is there volume with price changes from previous close before 8am est on some stocks?
swadehansen
- Pre-Market
|2009-03-11 01:21:42
Are you seeing trading activity before 8 am that did not take place in the after-hours market from 4 to 6:30 pm the previous day? Do you have any examples?
pj
- investor
|2009-03-13 13:47:55
When I log onto my brokers site and activate the streaming quotes, I see active movement in volume before 8am est. in most stocks ( citi - ford - aig ) where are these coming from?
jerkoff
- pre-market trading
|2009-04-12 10:13:45
some trading is available on the NYSE starting @ 4:00 AM eastern your not getting the whole story here. I need a broker the will let me trade these early hours. Pre market stock trading hours are typically from 8:00 a.m. till 9:15 a.m.ET (New York time) for Nasdaq and Nyse stocks. But using NYSE Arca ECN you can enter and execute orders already from 4:00 a.m. to 9:30 a.m. ET
airkev
- pre pre market trading
|2009-04-27 20:34:31
Its 1am PST 4/28/09 and Im logged into my brokers streaming quotes and FAZ just jumped from an after market close 4/27/09 of 8.92 to 9.64!!!,,,a 16% jump,,,4 hours before pre market even opens .Whoever gets to play these stocks before the average Joe,,,when there is breaking news is making a killing.Same last night with the airline stocks,,today its the financials.
pre pre market
- FAZ
|2009-04-28 02:26:57
What you are seeing is probably not what you think it is. The market makers move the prices on news but that doesn't mean there was anyone buying in at 8.92 before the price rose.
Also - depending on who your broker is they may be showing you the higher ask that appears after market close. Market makers will push the spread way out after market close so they don't get taken advantage of.
swadehansen
- Not all price changes are trades
|2009-04-28 02:55:36
I can't speak for each price change everyone sees, but one important thing to remember is that not all price changes are trades. When the market is closed, a market maker will look at the order book and decide where to open trading the next day---which usually means they have to move the price up or down depending on the buying and selling pressure they are seeing.
Kaliko in Hawaii
- Excellent - thanks
|2009-05-05 09:06:06
Just want to say a quick thank you to S. Wade Hansen for doing the video and being such a good instructor. Excellent!
JetsNeedVick
- 4am moves can't be market makers
|2009-05-27 23:39:09
Look, go to Google finance and get a quote for FAZ. Make sure "extemded hours" is checked on the settings tab. There are as many flucuations as during normal trading from 4am to 8am. Same thing with etrade's marketcaster, you can see bid prices and volumes changing constantly. I don't believe Market Makers are changing prices by the second.
Could it be some access by Global Markets?
Lejeune bauvil
- It is true that people are trading early at 4:00
|2009-06-23 01:22:08
I use etrade and I can trade from 8:00 am to 8:00 Pm and it is so sad when I am watching other trading transaction on pre market at nasdaq.com or even on etrade.I am not talking about price change.It is real trade.Go to google, type faz premarket trade, go next to the nasdaq link and you will see for yourself.Now, I am looking for a broker that can allow me to get rich that way.Send an e-mail if you have one thanks.
John Jagerson
- Trading early
|2009-06-23 02:31:13
Lejeune,
I hate to pop your bubble but you are no more likely to guess the direction of a stock in the premarket or aftermarket than you are during regular market hours.
However, if you are outside the U.S. you may want to look into stock CFDs, which are offered by a lot of forex dealers. If you are inside the states you could check out equity index futures. They trade nearly 23 hours a day 5 days a week. There are mini-sized contracts and they are very popular with big traders. We reviewed Optionsxpress as a brokerage that can provide access to those futures. Check it out.
Juna
- trading early
|2009-07-02 03:40:10
earnings surprise and trading options in pre-market, Do you think is a good agressive strategy??
swadehansen
- trading options pre-market
|2009-07-02 04:23:56
Juna, while you can trade some stocks during off-market hours through some brokers, you cannot do the same with options.
Juna
- trading early
|2009-07-02 09:22:43
OHH that s not a good new, but do you think trading penny stock and earning surprise could work similar???
swadehansen
- penny stocks
|2009-07-02 10:02:15
Juna, most penny stocks don't trade in off-market hours, and those that do have huge spreads due to lack of liquidity. On earnings, you could try to get in after the earnings numbers come out, but the move will have most likely already happened. The price tends to jump right after the announcement...leaving little, if any time, to get in before the stock moves.
Juna
- strategy
|2009-07-02 10:14:57
Thanks swadehansen, Do you trade in off-market hours?? Which strategy do you prefer??
drew
- Pre-After Market
|2009-09-29 00:57:38
I'm with Banc of America Investments, soon to be Merrill Lynch. I can trade from 7:30 am to 8 pm
Larry
- Extended hours...
|2009-09-30 19:03:04
The best broker for extended hours that I know of is InteractiveBrokers. They run from something like 4am to 9pm.
curtjester
- After Hours Stock Buying
|2009-10-20 10:18:34
I see that there is a lot of activity after hours. How do orders that are after hours and pre-market get chosen for the opening of the next day? Is it the earliest one who has put in a buy order, the one that is picked? I am sure that an order has to come to terms with the Maker's opening price for the day. How does that work exactly? How much power and influence do these Maker's have, and are they completely neutral in their setting of Prices?
TY, CJ
swadehansen
- Setting the opening price
|2009-10-21 01:07:18
Market makers set the opening price for the day based on where they see open orders and where they can match orders. For instance, if the market maker sees buy orders at $20.50, $20.55 and $20.60 but he doesn't see a sell order until $20.60, the market maker will set the price at $20.60 because he can fill that order.
NAC
- NewtoMarket
|2009-12-01 09:46:47
I am looking for suggestions on the most reliable/current/and fastest trading website/broker on the internet. Any suggestions or pointers out there?
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