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. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  2. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  3. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  4. SelectNet

    An automated trading system that facilitates electronic trading ...
  5. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  6. Instinet

    A global financial securities company that operates an electronic ...
Related Articles
  1. Retirement

    Electronic Trading Tutorial

    Learn about the systems that run the market. Topics include market makers, specialists, SuperDOT, ECNs, SOES, Level I, II, and III Access, and more.
  2. Fundamental Analysis

    4 Signs It's Time to Fire Your Financial Advisor

    Financial advisors provide valuable advice, but if your advisor communicates poorly, then it may be time to fire them.
  3. Investing Basics

    A Breakdown on How the Stock Market Works

    Learn what it means to own stocks and shares, why shares exist, and how you buy and sell them.
  4. Investing News

    What Could Hurt the Recent Turnaround in Stocks?

    Falling oil prices, bad corporate earnings and a rancorous election season hasn't done much to blunt the rally in stocks. Whether that lasts, depends.
  5. Investing Basics

    3 Investment Fees That Are Negotiable

    Investment fees are a necessary evil but that doesn't mean they have to be overly costly. There are ways to negotiate some of the expenses down.
  6. Investing Basics

    DIY Annuities: What You Need to Know

    Annuities are attractive because they can give you a stream of income, but they can be tricky to buy.
  7. Investing Basics

    Top 3 Stocks to Invest in If You Can't Stand Risk

    Don't have the appetite for risk? Consider these 3 stocks.
  8. Mutual Funds & ETFs

    ETF Fees and Waivers: The Devil Is in the Details

    ETFs are popular because of their low costs. But just how cheap they really are depends on whether there is a fee waiver and how often it is renewed.
  9. Investing Basics

    What Does Negative Shareholder Equity On A Balance Sheet Mean?

    Negative shareholder equity on a company’s balance sheet is a red flag that should prompt potential investors to take a closer look before committing their money.
  10. Investing

    What Happens to Bond ETFs in Stressed Markets?

    We are going to dive a little deeper today at how bond exchange traded funds (ETFs) fare when the markets are stressed.
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 ... Read Answer >>
  2. 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 >>
  3. How does a stop-loss order work, and what price is used to trigger the order?

    A stop-loss order, or stop order, is a type of advanced trade order that can be placed with most brokerage houses. The order ... Read Answer >>
  4. Do hedge funds have ticker symbols?

    Discover whether or not hedge funds have ticker symbols, where you can find ticker symbols and the significance of a ticker ... Read Answer >>
  5. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Answer >>
  6. Where do penny stocks trade?

    Learn where penny stocks are traded, and how investors can obtain access to penny stock trading, along with general information ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center