What are the advantages of U.S. stocks before and after the market? When are the U.S. stocks open? What are the risks?
one. What are the advantages of pre-market and post-market trading in US stocks?
The pre-market and after-hours trading hours are also known as extended-hour trading. For transactions conducted using electronic trading networks outside the regular trading hours of U.S. stocks, most mature markets have pre-market and after-hours trading systems.
1. Preemptive layout and flexible response to emergencies. For example, not long ago, Ruixing was reported as financial fraud, and it fell sharply before the market. Many investors took advantage of the sharp decline before the market to buy, and they also made a small profit by selling at the opening.
2. Market early warning, to perceive the impact of market conditions caused by emergencies in advance. For example, most companies will announce their financial reports before and after the market, and the ups and downs will also be reflected. The trading volume before and after the market in the earnings report season is relatively larger, and investors can operate according to the situation.
3. During longer trading hours, you can play US stocks without staying up late. For many investors, the most troublesome thing is staying up late to play US stocks, but using Huasheng's pre-market and after-hours trading function, the trading time has been extended by nearly 10 hours, which is not too cool~
However, it should be noted that stocks that support pre-market and after-hours trading must be listed on exchanges, such as stocks listed on the New York Stock Exchange and Nasdaq. transaction.
In addition, due to the customer's U.S. stock settlement and processing work, the current U.S. stock pre-market trading will be carried out after the U.S. stock clearing is completed. Please pay attention to the clearing end time of the day for the specific trading time~
2. How to operate before and after the market?
You have two paths to choose from:
Path 1: Click "Trade" to enter "US Stock Account" and select "Place Order"
Path 2: Select individual stocks - click "Trade"
Second, select "Limit Order" and enter the desired stock to confirm "Buy" or "Sell"
Third, in the "Order Confirm Buy/Sell" pop-up window, check "Whether to allow pre-market and post-market"
Click to confirm, the operation is complete~ However, it should be noted that only "limit orders" are supported before and after the market! However, if pre-market and after-market are allowed, the order validity period will end in the after-hours period of the day. That is to say, the unfilled orders during the pre-market session will be automatically transferred to the intraday trading session, and the unfilled orders during the intraday trading session will also be automatically transferred to the after-market session.
3. Risk Notice
Of course, there are certain risks in pre-market and after-hours trading. You need to pay special attention to the following:
1. Market liquidity risk
Market liquidity refers to the ability of assets to be smoothly realized at a relatively reasonable price without much loss. If the market is liquid enough, more orders will be filled and investors are more likely to buy or sell stocks at better prices. Market liquidity during pre-market or after-hours trading will be lower than regular trading hours, and pending orders during pre-market or after-hours hours may only be partially filled or unable to be filled due to market liquidity risks.
2. Volatility Risk
Volatility refers to the price changes of a stock during trading hours. In general, the more volatile a stock is, the more volatile its price is. Volatility can be higher during pre- or after-hours trading sessions than during regular trading sessions. Therefore, pending orders during the pre-market or after-market hours may be partially filled or not filled due to volatility risk. The transaction price will also not be as good as the intraday transaction price.
3. Risk of price changes
The trading price of a stock in the pre-market or after-market hours may not accurately reflect the opening price of the regular trading session or the next morning. Therefore, it is possible that the transaction price during the pre-market or after-hours session may not be as ideal as during the regular trading session.
4. Risk of major news announcements
Typically, issuers announce material news outside of regular trading hours that may affect their shares. Likewise, announcements of material financial information are usually made outside of regular trading hours. Significant news may be announced in the pre-market or after-market hours, which, combined with relatively low liquidity and relatively high volatility, could cause the stock to reach an unsustainably exaggerated price within a short period of time.
5. Spread widening risk
The spread is the difference in the price at which a stock is bought and sold. The lower liquidity and higher volatility that exist in the pre-market or after-market hours may cause stock price differentials to widen more than normal.