Some stocks may not trade at all during extended hours. During after-hours, there may be less trading volume for some stocks, making it more difficult to execute some of your trades. During regular trading hours, buyers and sellers of most stocks can trade readily with one another. That ability depends on the existence of buyers and sellers and how easy it is to complete a trade. Liquidity refers to your ability to convert stock into cash. If you are limited to the quotes within one system, you may not be able to complete a trade, even with a willing investor, at a different trading system. You need to ask your firm if it will route your order for execution to the other ECN. But remember that just because you can get quotes on another ECN does not necessary mean you will be able to trade based on those quotes. Check with your broker to see whether your firm's system will permit you to access other quotes on other ECNs. Some firms only allow investors to view quotes from the one trading system the firm uses for after-hours trading. While after-hours trading presents investing opportunities, there are also the following risks for those who want to participate: You should therefore shop around to find the firm that best suits your trading needs. As with trading during regular hours, the services offered by brokers during extended hours vary. Check your broker's website for available information on trading after-hours. You should consult your broker and read any disclosure documents on this option. Before you decide to trade after-hours, you need to educate yourself about the differences between regular and extended trading hours, especially the risks. And, with the rise of Electronic Communications Networks, or ECNs, everyday individual investors can gain access to the after-hours markets. Some smaller exchanges now offer extended hours. Although trading outside that window-or "after-hours" trading-has occurred for some time, it used to be limited mostly to high net worth investors and institutional investors.īut that changed by the end of the last century. today-have traditionally been open for business from 9:30 a.m. The New York Stock Exchange and the Nasdaq Stock Market-the highest volume market centers in the U.S.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |