Extended Trading

DEFINITION of 'Extended Trading'

Trading conducted on electronic exchanges either after regular trading hours are over or before they begin. Usually such trading is limited in its volume compared to regular trading hours. Pre-market trading in the U.S. markets usually runs between 8am and 9:30am EST, and after-market trading typically runs from 4pm until 6:30pm EST.

BREAKING DOWN 'Extended Trading'

Extended trading volumes have risen markedly over the past decade as more investors become comfortable with the technology platforms and financial markets become increasingly global.

The rise of electronic communications networks (ECN) have democratized extended-hours trading, allowing even small retail investors the chance to place trades during periods of time once reserved for large institutional investors.

RELATED TERMS
  1. Pre-Market

    A period of trading activity that occurs before the regular market ...
  2. Closing Quote

    A security's final regular-hours trading price for the day. Because ...
  3. After-Market Performance

    The price level performance of a newly issued stock after its ...
  4. Overnight Position

    Trading positions not closed by the end of the trading day and ...
  5. Volume Of Trade

    The total quantity of futures contracts bought and sold during ...
  6. Aftermarket Report

    A summary of how shares of an initial public offering (IPO) performed ...
Related Articles
  1. Investing

    Activities You Can Take Advantage Of In The Pre-Market And After-Hours Trading Sessions

    A great deal can happen in between the New York close of the market and the open the following morning. Learn how you can access opportunities and hedge against risk outside regular trading hours.
  2. Investing

    The NASDAQ Pre-Market: What You Need To Know

    Curious about pre-market or extended-hours trading? Here's a quick guide so you'll know what to expect.
  3. Trading

    What Is The Difference Between After-Hours Trading And Late Trading?

    “After-hours” trading and “late trading” both refer to investments made outside of normal business hours. While the two activities sound similar and often take place in similar time frames, the ...
  4. Markets

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  5. Investing

    The Opening Cross: How Nasdaq Stock Prices Are Set

    The National Association of Securities Dealers Automated Quotations, commonly referred to as Nasdaq, is a computerized marketplace where stocks are traded from 9:30am to 4pm Eastern Standard ...
  6. Markets

    What's After-Hours Trading?

    After-hours trading occurs on major exchanges outside of regular trading hours, and takes place between 4:30 and 8 p.m. Eastern time.
  7. Investing

    What's an Electronic Communications Network?

    An electronic communications network connects buyers and sellers so they can directly trade stocks, currencies and other financial instruments.
  8. Markets

    Should You Trade Forex Or Stocks?

    Deciding whether to trade stocks, foreign exchange or futures contracts typically comes down to risk tolerance, account size and convenience.
  9. ETFs & Mutual Funds

    Why Late Trading Is Illegal

    Institutional investors got a sweet deal that soured retail investors' mutual fund returns.
  10. Trading

    How To Tackle Intraday Volume

    Measure the flow of intraday volume to estimate the emotional intensity of the crowd.
RELATED FAQS
  1. How can my stock's price change after hours, and what effect does this have on investors? ...

    Most investors know that the major stock exchanges have standard trading hours - set periods of time each day when trading ... Read Answer >>
  2. 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 ... Read Answer >>
  3. Do all international markets trade between 9:30am and 4pm local time?

    The New York Stock Exchange and Nasdaq both trade between 9:30am and 4pm Eastern Time. All major stock exchanges trade at ... Read Answer >>
  4. Why does after-hours trading (AHT) exist?

    The advent of the Internet and electronic information exchanges has opened financial market trading to millions of investors ... Read Answer >>
  5. 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 ... Read Answer >>
  6. What is an overnight position in the forex market?

    Overnight positions represent all open long and short positions that a forex trader possesses as of 5:00pm EST, which is ... Read Answer >>
Hot Definitions
  1. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  2. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  3. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  4. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  5. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  6. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
Trading Center