What is the advantage to trading after or before the market closes? I'm very confused about what happens then. Can you please explain what is going on?
2007-09-04 12:01:10 · 2 answers · asked by kosmoistheman 4 in Business & Finance ➔ Investing
The advantage is that if there was any major news after the close of regular trading you can react quickly. Also, you have seen the days action and can respond to it. Most of the trading done after-hours is by people trying to pick up a big swing.
The trading is done via ECN (electronics communications network.) You must place a limit order. If it matches a corresponding order the trade is made. Since the volume is usually light most bids/asks don't get filled.
2007-09-04 13:31:43 · answer #1 · answered by Mystery 6 · 1⤊ 0⤋
People are up and doing business 24 hours a day somewhere on the globe .
When the US is sleeping , the far east is doing business (including trading stocks) .
When the US is up and doing , it is their nite time .
People are buying and selling aapl , wmt , ko or many others , 24 hrs a day . ( and some of those stocks listed on the NYSE are headquartered in the far east like
tm http://finance.yahoo.com/q/pr?s=TM
or ach http://finance.yahoo.com/q/pr?s=ach )
Also , because they are up and going opposite of us ,
Many US companies download clerical / data work to India ,
Then it is ready for the US companies the next business day !
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2007-09-04 19:17:39 · answer #2 · answered by kate 7 · 0⤊ 0⤋