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Benjamin Diesbach
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Benjamin Diesbach asked 7 months ago in Insurance Agents

How does after hours trading work?

I have never been sure as to how exactly after hours trading works since it is taking place after the market closes. What are the key differences with after hours trading? I am more of a short term investor right now, would after hours trading be a good strategy for me?

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Rahwa Asmerom
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Since there are far less people trading after 4pm eastern time, the market is more volatile and investments are riskier. It doesn't appear that it would be the best strategy to trade after-hours unless you're extremely experienced. The key differences of after-hours trading v. regular trading include less liquidity, wide spreads, competition (competing against large institutional investors), and volatility.

Last edited by Rahwa Asmerom at 2009-06-03 15:50:52

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