Market Structure
What is Pre-Market & After-Hours Trading - US?
US extended-hours trading lets investors trade NYSE/Nasdaq stocks before the 9:30 AM ET open (pre-market: typically 4:00–9:30 AM) and after the 4:00 PM ET close (after-hours: typically 4:00–8:00 PM) via ECNs.
Formula
Trades execute on Electronic Communication Networks (ECNs) like NYSE Arca, Nasdaq, IEX. Order types are typically limit-only.
How to Interpret
Liquidity is much thinner outside regular hours, with wider spreads and higher slippage. Most price action around earnings releases happens in extended-hours sessions (e.g. NVDA's massive moves often occur 4:05 PM ET). India does not have true after-hours equity trading on the main exchanges (NSE/BSE close at 3:30 PM IST), though there is a limited AMO (After Market Order) window.
Typical Ranges
Use limit orders only. Avoid market orders. Best suited for reacting to earnings and major news; not ideal for normal portfolio management.