What is after hours trading mean
After-hours trading can be a great way to boost your portfolio’s returns. It allows you to move quickly on news and events that take place outside normal trading hours, potentially giving you an edge. However, there are risks associated with aftermarket trading, and it’s not suitable for all investors. There are still a lot of limitations and possible problems with after-hours trading that the SEC is happy to warn you about, but the fact of the matter is that anytime you start trying to pick and choose individual stocks to trade, you’re setting yourself up for problems. After-hours trading occurs after the markets close. There is also a session prior to the market’s open which is called the pre-market session. Together both sessions are referred to as extended-hours trading. How does it work? Extended-hours trading is made possible by computerized order matching systems called electronic markets.