Is it risky to trade stocks in the new after-hours markets?
By DUNSTAN PRIAL AP Business Writer Q: I want to trade stocks when I get home from work, but I’ve heard the after-hours markets can be risky. Are they? A: After-hours trading does pose some risks, and that’s partly due to the fact that activity right now is fairly thin. Since there aren’t too many people trading during off hours, there’s a good chance a trade won’t get completed because buyers can’t always be matched with sellers, and vice versa. Also, in markets where activity is modest, stock prices tend to become more volatile. All that could change sometime next year when the New York Stock Exchange and the computerized Nasdaq stock market — both of which have high levels of liquidity — begin after-hours sessions. (Watch for an upcoming announcement.) In addition, regulators and the operators of alternative trading systems — known as electronic communication networks, or ECNs — have been working hard to reduce the risks. One way has been to require investors to place “limit ord
