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How Does the US Market Work

Views 4970Nov 1, 2023

What is After-Hours trading?

Overview

In this article, we will introduce:

What is After-Hours trading?

What investment products in Moomoo support After-Hours trading?

What are the After-Hours trading hours?

The benefits and risks of After-hours trading

For most stock markets, the main trading session takes place during the daytime. However, trading activity isn't restricted to the time of day. It does, in fact, take place after the market closes - once normal business hours are done. This is known as the after-hours trading session. 

After-Hours Trading

After-hours trading is the period of time after the market closes when an investor can buy and sell securities outside regular trading hours.

The trading volume during the after-hours trading session tends to be fairly thin. That's because there are usually very few active traders during this time period. This can change, though, with volume spiking if there's big economic news or something breaks about a company.

Investment Products

Stocks, Options, ETFs, ADRs, OTC, U.S. IPOs

Moomoo currently does not support Mutual Funds and Bonds.

Trading Hours Coverage

After-hours trading can be divided into two different parts of the day, Pre-Market Hours and After-Market Hours. Moomoo offers our clients a variety of assets covering multiple markets, the total trading hours can last about 22 hours.

  • Pre-Market Hours: 04:00 EST – 09:30 EST

  • Regular Hours: 09:30 EST – 16:00 EST

  • After-Market Hours: 16:00 EST – 20:00 EST

Benefits and Risks of After-hours trading

After-hours trading allows investors to

  • Trading on fresh information: react immediately to breaking news 

  • Pricing opportunities: you may find some appealing prices during this time

  • Convenience: added flexibility of trading

However, After-hours trading does have some risks. Risks associated with after-hours trading include:

  • Less liquidity: less trading volume for your stock, and it may be harder to convert shares to cash

  • Wider spreads: a lower volume in trading may result in a wider spread between the bid and ask prices

  • More competition from institutional investors

  • More volatility

Source: Investopedia

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeline for any particular purpose of the above content.

Moomoo is a financial information and trading app offered by Moomoo Technologies Inc.

In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).

In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.

In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our website  https://www.moomoo.com/au .

In Canada, order-execution only services available through the moomoo app are provided by Moomoo Financial Canada Inc., regulated by the Canadian Investment Regulatory Organization (CIRO).

In Malaysia, investment products and services available through the moomoo app are offered through Futu Malaysia Sdn. Bhd. ("Moomoo MY")regulated by the Securities Commission of Malaysia (SC). Futu Malaysia Sdn. Bhd. is a Capital Markets Services Licence (License No. eCMSL/A0397/2024) holder. This advertisement has not been reviewed by the SC.

Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd.,Futu Securities (Australia) Ltd, Moomoo Financial Canada Inc., and Futu Malaysia Sdn. Bhd. are affiliated companies.

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