What Is After-Hours Trading? A Simple Guide
After-Hours Trading Explained
After-hours trading is when you can buy and sell stocks after the stock market officially closes at 4:00 PM Eastern Time. It typically runs from 4:00 PM to 8:00 PM ET.
When you hear someone say "the stock jumped 10% after hours," they're talking about price changes during this window. It's the same stocks, the same brokerage account — just a different time of day.
When Is After-Hours Trading?
After-hours trading runs from 4:00 PM to 8:00 PM Eastern Time, Monday through Friday. Some brokerages may end it earlier (like 6:00 PM), so check with yours.
Here's how the full trading day breaks down:
- 4:00 AM – 9:30 AM ET: Pre-market trading
- 9:30 AM – 4:00 PM ET: Regular market hours
- 4:00 PM – 8:00 PM ET: After-hours trading
Track exactly when the market closes with our live countdown timers.
Why Does After-Hours Trading Exist?
Many companies release their earnings reports right after the market closes at 4:00 PM. Without after-hours trading, investors would have to wait until the next morning to react — and by then, the big moves might already be priced in.
After-hours trading gives people a chance to act on news as it happens, even outside of regular hours.
Risks of After-Hours Trading
After-hours trading comes with some extra risks compared to regular hours:
- Lower volume: Fewer people are trading, which means less competition for your order
- Bigger price gaps: Stocks can jump or drop more sharply because there aren't as many buyers and sellers
- Limit orders only: Most brokerages require you to use limit orders (setting a specific price) rather than market orders during after-hours
- Not all stocks available: Some smaller stocks may not have any after-hours activity at all
For beginners, it's often best to watch after-hours moves and then decide what to do the next morning during regular market hours.
Frequently Asked Questions
What time is after-hours trading?
Can you buy stocks after hours?
Why do stocks move after hours?
Is after-hours trading safe for beginners?
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