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What are the risks of trading before or after the market?

US stocks before and after trading are trading outside the regular trading hours. Regular trading hours generally refer to 9:30 am – 16:00 pm EDT. When trading in front of or after the market, you should be aware of the following risks:

1. Market Liquidity Risk – Market liquidity is lower than regular trading hours, and pending orders may result in partial transactions or failure to close.

2. Volatility risk – The wave is higher than the regular trading hours, and the pending order will result in partial transactions or failure to close. The transaction price will not be as good as the intraday trading price.

3. Risk of price changes – The price of the delivery cannot accurately reflect the price at which the regular trading session opens. The transaction price will not be as good as the intraday trading price.

4. Significant news announcement risk – In general, stock issuers will release significant news outside the regular trading hours that may affect their stocks, which may result in stocks reaching an unsustainable arbitrary price in a short period of time.

5. Spread risk – The difference between the stock trading price, and the stock price difference increases normally before the pre-market or after-hours trading.

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The performance figures and returns data presented herein is a back-tested result for advertising purpose and should not be considered indicative of future results.
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