What are after-hours trading hours?

After-hours trading takes place after the trading day for a stock exchange. It allows you to buy or sell stocks outside of normal trading hours. Typical after-hours trading hours in the U.S. are between 4 p.m. and 8 p.m. Eastern Time. Image source: The Motley Fool.

What time does the stock market close?

The closing bell shuts the U.S. stock market at 4 p.m. Eastern time each day, but trading continues in other venues after the bell. After-hours trading comes with unique risks, although many investors use these extended hours as a key tool in their strategy. What Is After-Hours Trading?

What is the difference between premarket trading and after-hours trading?

Generally, after-hours trading refers to trading that takes place after normal market hours and up until about 8 pm. Premarket trading refers to trading that takes place before the start of normal market hours, generally from 7 a.m. until 9:25 a.m. Together, after-hours trading and premarket trading are referred to as extended-hours trading .

How does after-hours trading affect a stock's opening price?

After-hours trading often has an impact on the opening price for a stock at the beginning of the next normal trading session. This is especially true if select events have occurred such as earnings release or extremely low liquidity.