How does after hour trading work?
In: Economics
So typically there are a number of big trading platforms called electronic communication networks that then communicate with each other via the stock exchanges, so anybody can trade with anybody and maximum efficiency is achieved during main trading hours. During after hours trading, you’re basically limited to trades among others using the same electronic communication network to execute trades. This means your trade on E-Trade might only be traded among other E-Trade customers and whatever other brokerages use the same ECN as E-Trade.
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