After Hours Trading
After hours trading refers to trading that takes place outside of the normal hours of the market. This can be either before the market opens or after it closes. The stock market is only open from 9:30 am to 4:00 pm ET, and there are different rules regarding what days it does and does not open.
There are several risks associated with after hours trading, so if you’re a beginner you might want to wait until you have a better understanding of how this works before getting involved in it. The largest risk is due to low volume- meaning there aren’t as many people buying/selling which can cause your trade order to go unfilled if no one else wants what you’re offering at that time (or vice versa). Also because there aren’t as many people trading during these off-hours there’s less liquidity which means more volatility and higher prices than those seen on regular days when everyone else is also trying their best deals!
NYSE Trading Hours
You’ve probably heard that the stock market is open from 9:30 a.m. to 4:00 p.m. Eastern Time, Monday to Friday. However, there are exceptions to these hours and these can affect how long it takes for your trade to settle and clear. For instance, the NYSE closes for lunch between 11:30 a.m. and 12:30 p.m., which means trades can’t be executed during this period of time, although pre-market trading does occur during the morning hours before the market opens at 9:30 a.m., as well as extended evening trading after 4 p.m.. Additionally, some holidays may affect stock market hours; however, many exchanges close early on the day before Christmas Eve (Dec 24) and New Year’s Eve (Dec 31), as well as closing early Christmas Eve (Dec 24) and New Year’s Eve (Dec 31).
NASDAQ Trading Hours
- NASDAQ market opens at 9:30 AM EST and closes at 4:00 PM EST
- NASDAQ market is open Monday through Friday
- NASDAQ market is closed on Saturday and Sunday
- NASDAQ market is closed on the following holidays:
- New Year’s Day
- Martin Luther King Jr. Day (Third Monday in January)
- Presidents’ Day (Third Monday in February)
NYSE American Trading Hours
Trading doesn’t end just because the bell rings. The New York Stock Exchange (NYSE) is a global marketplace that allows investors to trade securities, such as stocks and exchange-traded funds (ETFs), during official trading hours, which are Monday through Friday from 9:30 AM to 4:00 PM EST. Many investors aren’t aware that trading can still occur after the closing bell rings at 4 PM but only through certain electronic communication networks (ECNs).
NYSE American Trading Hours – Pre-Market & After Hours
The pre-market session provides investors with an opportunity to trade stocks between 8 AM ET and 9:30 AM ET, an hour and a half before the market officially opens. Investors who don’t have time during traditional market hours to analyze stock charts or follow company news can use this time more efficiently.
Similarly, after hours trading goes from 4 PM to 8 PM ET when the markets are closed. It’s especially useful for investors who have full-time jobs or other time commitments during traditional market hours. As with pre-market trading, it gives investors additional opportunities to make informed investment decisions.
Closing Time for NYSE and NASDAQ Stocks
The New York Stock Exchange and NASDAQ close at 4:00 p.m. Eastern Standard Time, Monday through Friday (except holidays).
That’s 1:00 p.m. Pacific time, so if you’re trading on the West Coast, keep in mind that stock prices will stop updating at 1:00 p.m., not 4:00 p.m. your time.*
Exchange Traded Funds (ETFs)
ETFs, or exchange-traded funds, are specialized mutual funds that trade on the stock market. They hold a basket of securities in the same way that traditional mutual funds do. The idea is to provide investors with a focused exposure to a particular asset category or theme without having to buy into individual stocks. ETF investors can make money by buying and selling shares of an ETF as its share price rises or falls, similar to trading company stocks. As an investor, however, you will not be able to sell an ETF short during after hours trading.
Like regular mutual funds, there are hundreds of different ETFs out there with varying strategies and holdings based on different themes. Some ETFs invest in technology companies while others invest in commodities like oil or gold. You can also purchase leveraged ETFs that allow you to create long positions in the fund for more than 100% for every dollar you put up (or short positions for less than 100%). When pursuing investments through after-hours trading in these types of funds, it’s important that traders understand what they’re buying into since most leveraged funds reset their holdings each day and as such won’t be able to profit from longer trends.
How to Trade After Hours on TD Ameritrade
If you are interested in trading on TD Ameritrade after the market closes, you can do so by accessing their extended hours trading session. This session is available from 4:00 p.m. to 6:30 p.m ET, and only allows for the execution of market orders on a select group of securities (typically between 150-200 stocks).
TD Ameritrade does not allow for the shorting of securities during its extended hours session, but does allow for just about any other order type (limit orders, stop-loss orders, trailing stops, etc.). The brokerage also allows users to enter limit orders with limit prices that are higher or lower than the current market price at the time they are submitted (these are known as “wide” limits).
Anyone who trades stocks should know the rules and regulations of after hours trading.
Although trading stocks after hours is an option, it’s important to understand that these trades are not guaranteed. Like all investments, there are always risks involved. You should also be aware that some stocks may not be available after hours due to lack of liquidity.