4 Benefits and Risks of Buying Stocks After Hours
Whether you are a man or a woman, if you want to make some have some excess money in cash, you should employ it so that it can grow and you can have a future surplus. Today, investing in the stock market is very easy.
A regular market opens in the late morning and closes by early evening but if you are a housewife or doing a 9 to 5 job there it is nearly impossible for you to buy some stocks. Then can stocks be bought after hours?
Can stocks be bought after hours?
Of course, even after the regular market hours, you still have an hour or two to place orders. This is called after hours trading.
With the advancement of technology, now an average investor can easily buy and sell his stock after-hours trading.
There are generally three periods in which you can do stock market trading:
- Pre-market trades from 9:00 am to 9:15 am EST.
- Regular market trades continue between 9:15 am to 3:30 pm EST.
- After-hour market trades from 4:00 p.m to 8:00 pm EST.
Pre-market trading and After-hour trading are together called extended-hours trading.
Regular or Normal Trading Session:
This is the regular timing of a market to open and trade to take place. During this time you can easily buy and sell stocks in this period.
What is after-hours trading?
After-hours trading allows to trade even after market hours. It is a great opportunity for those who don’t have enough time to trade in regular market hours.
Benefits of after hours trading
- After-hours trading has some highly volatile stock prices which can benefit traders greatly.
- Some important news can be reported after regular time. But you don’t have to wait for the next day so take any step you can easily start trading in this after-hours trading.
- Ives you a lot of time to do great research and study various reports and then easily start trading avoiding any haste decisions.
- You can easily place, modify or cancel your AFO anytime.
Risks associated with after-hours trading
- Less Liquidity: Liquidity is the ability of buyers and sellers to do a trade. During after-hour, there are less fewer stocks of buyers and sellers and therefore it becomes difficult to strike a deal.
- Higher volatility: Volatility is higher in after-hour trading than in regular market hours. As a result, prices of the stocks can swing greatly in this period, and therefore it is possible for your order to not be placed, partially accepted, or not at all.
- Prices: The prices of after-hours stocks are different in after-hour trading and regular trading. Therefore, you may receive an inferior price in after-hours trading.
- Trading after hours is risky to trade -: you can either receive a hue profit or could suffer huge losses.
Stocks are a great opportunity for you to invest your money and grow it for a long time. No matter in which session you to trading, whether it’s pre-market, regular, or after-hours trading.