How does after hour trading work?
In: Economics
There is nothing really ‘different’ about after hours trading. If you get access to it, there are people listing their stocks to sell and there are people there to buy them. That’s basically it.
The ‘normal’ stock trading hours 9:30 to 4 pm. Generally this just came from tradition where actual people were involved.
There is still a bit of that today. Computers may run 24/7, but they still need support staff. Generally ‘off-hours’ allow fewer people to be on staff, system maintenance, financial calculations and everything to be done…
For this reason, the markets tend to want to keep most trading to the core hours. If you get access to it outside of those hours, there will just be a smaller group of people trading, more volatility…
Outside of that, it’s basically the same thing.
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