Definition of After-hours trading:
After-hours trading is something traders or investors can use if news breaks after the close of the stock exchange. In some cases, the news, such as an earnings release, may prompt an investor to either buy or sell a stock.
After-hours trading starts at 4 p.m. U.S. Eastern Time after the major U.S. stock exchanges close. The after-hours trading session can run as late as 8 p.m., though volume typically thins out much earlier in the session. Trading in the after-hours is conducted through electronic communication networks (ECNs).
Sale/purchase of securities transacted online when the exchanges are closed.
How to use After-hours trading in a sentence?
- After-hours trading starts at 4 p.m. and ends at around 8 p.m.
- The spread between the bid and the ask may be wider in after-hours trading.
- Stocks are not as liquid during after-hours trading.
Meaning of After-hours trading & After-hours trading Definition