Glossary

After-hours trading refers to the buying and selling of securities outside of the standard trading hours of the major stock exchanges.

This occurs on electronic communication networks (ECNs) that match buyers and sellers directly, bypassing the traditional exchange. After-hours trading allows investors to react to news and events that occur outside of regular market hours, which can be advantageous for those seeking to capitalise on opportunities. 🌙

For example, a company may release its earnings report after the market closes. Investors who want to trade on this information can do so during after-hours trading, potentially taking advantage of price movements before the market opens the next day.

Fun fact: After-hours trading used to be exclusive to institutional investors, but with the development of ECNs and advancements in trading technology, retail investors now have access to this extended trading session as well. 💡