After Hours Trading
Definition
Trading outside regular stock exchange hours.
After Hours Trading refers to the buying and selling of securities outside the regular trading hours of a stock exchange, typically from 4:00 PM to 8:00 PM Eastern Time on weekdays.
After Hours Trading matters as it allows investors to react to news events or earnings reports that occur after the regular market close, providing liquidity and price discovery in extended trading hours. However, it's riskier due to lower volume and wider spreads.