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Market Structure

Pre-Market / After-Hours

Extended trading sessions before (4-9:30 AM ET) and after (4-8 PM ET) regular market hours.

What is Extended Hours Trading?

Pre-market trading runs from 4:00 AM to 9:30 AM ET. After-hours trading runs from 4:00 PM to 8:00 PM ET. These sessions allow trading outside regular hours (9:30 AM - 4:00 PM ET).

Characteristics

  • Lower volume: fewer participants means wider spreads
  • Higher volatility: earnings releases and news cause big moves
  • Limit orders only: most brokers don't allow market orders in extended hours
  • Price gaps: pre-market price sets the opening gap for regular hours

Related Terms

Assignment (Options)

When the seller of an option is forced to fulfill the contract because the buyer exercised. Happens randomly and cannot be refused.

At the Money (ATM)

An option whose strike price is roughly equal to the current stock price. Has the most extrinsic value of any strike.

Gap

When a stock opens significantly higher or lower than its previous close, creating a 'gap' on the chart.

Market Hours

The US stock market is open 9:30 AM to 4:00 PM Eastern Time, Monday through Friday. Pre-market starts at 4:00 AM, after-hours ends at 8:00 PM.