Trading after hours can be valuable in determining how the stock market will move the next day. After hours trading gives a significant advantage to traders by providing foresight on the market that can’t be seen during standard working hours. Pre-market trading is specifically for the public, and brokerage companies allow people to trade before Eastern Standard-Time traditional trading hours. This allows the public to trade 30 minutes before the opening bell. Pre-market hours are for only half an hour before the official opening time in Eastern Standard Time. Post-market hours are from 4-6:30pm eastern standard time, and after that, the markets close. With Questrade the public can trade for an hour and a half after hours, and for 45 minutes when living in Canada.

Questrade Does Have After-Hours Trading

This is what makes Questrade the best option for traders. Questrade offers traders a free IQ web practice account, which does not only provide many different tutorials on trading but also gives traders $500,000 in practice cash to play with. Not only do the tutorials help traders to learn the best tips and tricks after hours, but it also analyses performance and shows traders how to improve their strategy. Questrade has many different features such as a watch list, where traders can see how the stock is performing on the day.

Traders are also able to see a balance sheet that is updated continuously so that traders can evaluate their buying power. The snap quote function allows traders to get instant market quotes, which helps to speed up the trading process. The charts are a visual tool that allows traders to view the historical performance of their stocks. After- hours trading is most often referred to as GTEM. This stands for good till extended market.’ This means that the order is open in pre and post market hours. Some traders find that if the end of the market hours does not fill the order, then it is subsequently canceled.

Benefits and Drawbacks of After-Hours Stock Trading

There are many risks to trading stocks after hours. This involves risks listed by the Securities & Exchange Commission. The first risk is that traders cannot see or act on quotes, as there is only one trading system available for after-hours trading. There can be a difference between which citations can be seen, and which quotes can be traded. Also, there is also a risk of liquidity. This means that during trading hours there is a severe risk of liquidity because most buyers and sellers can exchange and actively trade during busy trading hours, However, in post-market trading, there is less stock volume, which makes it difficult for traders to execute trades.

Trading after hours also means that there are larger quote spreads. Less trading activity implies that there are categorically wider spreads between bid and ask prices. This means that there can be challenges in order execution, or that the trader may miss out on favorable prices during standard trading hours. Trading stocks after hours can also mean that there can be increased price volatility as it can be expected that there will be higher price fluctuations.

The prices of stock trading can therefore not reflect the standard rates which are traded during regular trading times. So even if the stock makes a dramatic increase during post-trading hours, it may dramatically decline when the regular trading commences. Some traders complain that there is particular bias in that limit orders are the only accepted in pre and post-market trading sessions, which means that some traders may experience having their orders missed due to technological delay.