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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

Catalyst

An event or news that triggers a significant price move: earnings, FDA approvals, analyst upgrades, etc.

Gap

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

Opening Drive

The first 30-60 minutes after the market opens (9:30-10:00 or 10:00 AM ET), characterized by the highest volume and volatility of the day as overnight orders, gap reactions, and early momentum trades execute.