As an investor, it is important to understand the different trading hours in the stock market. Two terms that you may come across are “at close” and “after-hours”. In this article, we will explore what these terms mean and how they can impact your investments.
At Close
“At close” refers to the end of the regular trading hours for the stock market. In the United States, this is typically at 4:00 PM Eastern Time. At this time, the closing price of a stock is determined. This price is based on the last trade that was made before the market closed.
It is important to note that the closing price is not necessarily the same as the opening price of the next trading day. This is because news and events that occur after the market closes can impact the price of a stock. Additionally, after-hours trading can also impact the opening price of the next trading day.
After-Hours
“After-hours” trading refers to the buying and selling of stocks outside of regular trading hours. In the United States, after-hours trading typically occurs between 4:00 PM and 8:00 PM Eastern Time. However, some brokers may offer extended hours trading, which can go as late as 9:30 PM Eastern Time.
After-hours trading can be beneficial for investors who want to react to news or events that occur outside of regular trading hours. However, it is important to note that after-hours trading can be more volatile and have lower liquidity than regular trading hours. This means that prices can fluctuate more rapidly and it may be more difficult to buy or sell stocks.
Impact on Investments
Understanding at close and after-hours trading can be important for investors. The closing price of a stock can impact the opening price of the next trading day, which can impact the value of your investments. Additionally, after-hours trading can impact the price of a stock, which can also impact the value of your investments.
It is important to keep in mind that the stock market is constantly changing and reacting to news and events. As an investor, it is important to stay informed and make informed decisions based on your investment goals and risk tolerance.
