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How does after hours trading work?

April 26, 2017Business Finance hours Investing trading

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How does after hours trading work?

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The after hours market has a lot of risks. You can attempt to sell the stock during after hours but if it’s all down volume you may get really bad pricing because of various issues as I will indicate here. 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 whether your firm’s system will permit you to access other quotes on other ECNs. But remember that just because you can get quotes on another ECN does not necessary mean you will be able to trade based on those quotes. You need to ask your firm if it will route your order for execution to the other ECN. If you are limited to the quotes within one system, you may not be able to complete a trade, even with a willing investor, at a different trading system. Lack of Liquidity. Liquidity refers to your ability to convert stock into cash. That ability depends on the existence of buyers and sellers and how easy i

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It looks like if you purchase stocks and they plumet throughout after hours trading, you’ll be loosing money and not be able to do anything about it till the market opens the following day.