After-Hours Trading

After-hours trading is any market transaction that takes place after the market closes or before it opens. After-hours trading is not new to the stock market; however it is generally more accessible today than it had been in the past. While it had been predominately exclusive to institutional investors or HNW (high net worth) individuals, the advent of online brokerages (and more importantly electronic communication networks) has made after-hours trading available to everyone. It is important to note that liquidity is more of a concern as a result of fewer transactions and therefore placing limit order is crucial in after-hours trading.

After-hours trading generally works through a process called cross-matching. Trades are only processed if the price you want to buy a security matches the price someone else wants to sell it at. For this reason many online brokers require the use of limit orders for after-hours trading.

Wall Street Survivor does not offer after-hours trading. You can, however, place an order to Buy, Sell, Short or Cover after the market closes and you will simply be filled at the best price when the market opens.

As mentioned, most online brokers offer after-hours trading. Here is a short and limited list of some of the online brokers that offer it and their trading hours (please note that the regular market is open from 9:30AM to 4:30PM):

E-Trade: 8am – 8pm
Ameritrade: 8am – 8pm
Schwab: 7:30am - 9:15am and 4:15pm – 8pm
TD Waterhouse: 7:30am – 7pm
Fidelity: 7:30am - 9:15am and 4:15pm – 8pm
TradeKing: 8:30am – 5pm

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