After-Hours Trading - AHT

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DEFINITION of 'After-Hours Trading - AHT'

Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks (ECNs) has greatly facilitated after-hours trading, which is no longer restricted only to large institutional investors but is now available to any investor. Also known as the "after-hours market."

INVESTOPEDIA EXPLAINS 'After-Hours Trading - AHT'

After-hours trading volume in specific stocks often surges upon the occurrence of market-moving events, such as earnings reports, pre-earnings announcements or M&A activity. Lower liquidity and wider bid-ask spreads are a common feature of after-hours trading. However, investors may consider this a small price to pay for the privilege of exiting a losing position before regular trading commences, or initiating a new position ahead of the crowd. After-hours trading is heaviest in the first hour or two after markets close, before tapering off sharply. As financial markets become increasingly integrated with the advent of globalization, after-hours trading is likely to expand going forward.

To learn more about the history of after-hours trading, check out Why does after-hours trading exist?

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RELATED FAQS
  1. Why are the bid and ask quotes usually so far away from each other in after-hours ...

    After-hours trading is defined as the exchange of securities outside of an exchange's specified regular trading hours (usually ...
  2. What does "after the bell" mean?

    "After the bell" is financial slang for activity occurring after the close of the stock market, including after-hours trading, ...
  3. How can my stock's price change after hours, and what effect does this have on investors? ...

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  4. Where can I find information about pre- and after-hours trading on the NYSE and the ...

    The stock market, particularly the NYSE and Nasdaq, is traditionally open between 9:30am and 4pm EST. Over time, with the ...
  5. What is after-hours trading? Am I able to trade at this time?

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