After-Hours Trading

Trading that occurs outside regular stock exchange hours, typically 4 PM - 8 PM ET.

What Is After-Hours Trading?

After-hours trading occurs from 4:00 PM to 8:00 PM Eastern Time, after the regular stock market closes. This is when most earnings reports are released, making it the most exciting (and volatile) after-hours period.

Why Earnings Move After Hours

Companies release earnings after the market closes specifically to give investors time to digest the information before the next regular trading session. However, large institutional investors and active traders immediately react in the after-hours market, often creating dramatic price swings.

Risks of After-Hours Trading

• Low liquidity: Far fewer participants than regular hours, leading to wider spreads.
• High volatility: Prices can swing wildly on relatively small volume.
• Potential reversals: The after-hours reaction doesn't always hold. A stock that drops 5% after-hours might recover by the next morning's open as more investors analyze the results.