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After Market Close Volatility Trading

By Noah Patel 183 Views
After Market Close VolatilityTrading
After Market Close Volatility Trading

The after-hours session typically follows directly after, running from 4:00 PM to 8:00 PM ET. This typically runs from 4:00 AM to 9:30 AM ET.

This reduction in liquidity often leads to wider bid-ask spreads, making entry and exit more costly for retail traders. This window acts as a bridge between the current trading day and the next, setting the stage for future activity.

Leaving positions open overnight exposes investors to the gap risk—the possibility of a drastic change in price between the close and the open. Currency movements, commodity prices, and international indices all feed into the sentiment that US traders face when logging on after the close.

Traders use this time to scan for catalysts and determine the opening direction based on futures contracts and global performance. This timeframe is divided into two distinct phases: the extended session and the overnight session.

More About When does after market close

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Written by Noah Patel

Noah Patel is a Senior Editor focused on business, technology, and markets. He favors data-backed analysis and plain-language explanations.