After-Hours Trading

Business, Legal & Accounting Glossary

Definition: After-Hours Trading



Full Definition of After-Hours Trading


After-hours trading is stock trading which takes place after the traditional 4:00 p.m. close of the New York markets. While after-hours trading has been available to institutional investors for quite some time, after-hours trading is now permissible for all traders. After-hours trading is conducted via an Electronic Communication Network (an ECN), which electronically matches buyers and sellers rather than by open call, which is still the primary method of order fulfilment during normal trading hours. While the after-hours trading volume is generally very light, there are advantages to after-hours trading, especially for institutional investors. By using the ECN for after-hours trading, traders can avoid the spreads charged by market makers, plus with after-hours trading there is greater anonymity, an important consideration for many large traders.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/after-hours-trading/
Modern Language Association (MLA):
After-Hours Trading. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. December 05, 2020 https://payrollheaven.com/define/after-hours-trading/.
Chicago Manual of Style (CMS):
After-Hours Trading. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/after-hours-trading/ (accessed: December 05, 2020).
American Psychological Association (APA):
After-Hours Trading. PayrollHeaven.com. Retrieved December 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/after-hours-trading/

Definition Sources


Definitions for After-Hours Trading are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 1st April, 2020 | 1 Views.