Extended hours trading refers to stock trading that takes place either before (Pre-market) or after (After-hours) the regular trading hours of a stock exchange. Pre-market and after-hours trading is an option available only for the most liquid US stocks available for leveraged trading. The feed we get for our extended trading hours is from the same financial institutions and sources, as the price feed, we get for our regular market session.
Here's what the extended trading hours are:
- Pre-Market - takes place each trading day from 08:00 - 13:30 GMT.
- After-Hours - take place each trading day from 20:00 - 00:00 GMT. Their start coincides with the close of the regular market session, which means that you'll be able to trade the most liquid US stock CFDs from 08:00 to 12:00 GMT without interruption.
The extended hours trading option allows you to react in a timely manner to a possible increase in volatility following earnings reports and other scheduled or unexpected events.
Nevertheless, the extended hours are usually characterized by thinner liquidity and higher volatility. These can lead to micro gaps in the respective instrument’s price as well as to its suspension from trading should it not receive any price quotes in a time frame of 5 minutes.
*It's good to know, during these hours a given instrument can also be suspended from trading. This can happen if no price quotes are received regarding the instrument in a time frame of 5 minutes.