Risks of Trading Pre-Market and After Hours
All investing involves risk, but the Securities and Exchange Commission
(SEC) outlines the following eight risks that are specifically associated with trading in the after-hours and pre-market
Risk #1: Inability to see or act upon quotes
Some firms only allow investors to view quotes from the one trading system the firm uses for after-hours trading. Check with
your broker to see which firms’ quotes you will be able to see and off of which quotes you will be able to trade.
Risk #2: Lack of liquidity
During regular trading hours, buyers and sellers of most stocks can trade readily with one another. During after-hours, there
may be less trading volume for some stocks, making it more difficult to execute some of your trades.
- Poll of the Day