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Volatility: Changes in price of a security during trading hours is known as volatility. the risk is that your order may be partially executed or not executed at all. However, with very low levels of liquidity during pre-market and after-market hours, there is no guarantee that a certain trade will be executed. Liquidity: If there are a large number of orders in the market, the liquidity of a security is considered to be high. While extended hour trading may give you an advantage, it is important to understand the risks as well. Let's say a company with close ties to a market in Asia experiences fluctuations in price - investors trading after-hours may be able to act quickly on this information. For example, if a company releases a surprisingly favourable earnings report after hours, it could create a demand for shares and a subsequent bump in the company's stock price.Īnother scenario could be the influence of overseas markets.

Why investors engage in pre-market and after-hours tradingĮxtended trading hours can offer a number of benefits to investors, as they can use this time to quickly respond to business news or changes in the market.
#After hours trading free#
If you don't have a brokerage account, there are a number of sites that offer free access to pre-market and after-hours data. This is usually provided for free.įor example, with TD Direct Investing you can enter pre-market or after-hour orders online using WebBroker or Advanced Dashboard for eligible securities. If you have a brokerage account, you can use its information services to access detailed after-hours market trading data.
