1. Your Questions About Nasdaq After Hours
Robert asks…
What are Pre-market trading hours and After-market hours?
In NASDAQ, what are the Pre-market trading hours and After-market hours? I guess buy/sell
order can be placed in this hours but execution can only take place in trading hours?
Can anybody elucidate?
Steve Winston answers:
As for the hours, each exchange and ECN has their own trading times. I believe NASDAQ and
NYSE Arca starts the pre-market session at 8:00AM and ends after-market at 5:00PM. ECNs
generally have much longer trading hours, and the earliest begins at 4:15AM and ends at
7:00PM.
Like the two previous posters wrote, liquidity during pre and after-market hours tends to be
extremely thin for most stocks. In generally, on the most liquid stocks and ETFs are traded
during those times.
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2. Sharon asks…
Are Electronic Communications Networks / ECNs for Stock Market
open 24/7 or is there times when they r closed?
I am looking at GM stock charts on Nasdaq after hours but it does not show the date . I am
thinking the chart is showing Wednesdays data since normal trading ended early plus it likely
was closed for Christmas. I will propbably have to wait for Pre-Market data. Is there other times
when institutional investors do not have access to ECNs?
Steve Winston answers:
No they are not open 24/7. For example Nasdaq extended trading is 8:00-9:30 AM Eastern
Time and 4:00-6:30 PM Eastern Time.
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3. John asks…
"why isn't there 'one' place to get after hours quotes"?
"why isn't there one place to get after hours quotes" I go on yahoo I get one after hours quote.
Then I go on Ameritrade I get another, and finally on go on the Nasdaq site and I get another.
Steve Winston answers:
The same reason there isn't one restaurant to go out for dinner...
I'm not sure I understand your question.
///
Laura asks…
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4. Daytrading in Pre/After Market Hours?
I have a brokerage account with a balance under $25,000 and so can only execute 3
DAY-trades within 5 business days or I will be deemed a pattern daytrader and will receive a
margin call per dow/nasdaq rules. My question is, does this apply to trading in pre/after market
hours? Essentially, if I buy shares during premarket hours and sell them after the market
opens is this considered a daytrade?
Steve Winston answers:
Basically, yes.
Premarket trades are 'counted' as occurring on the day they are executed. Check with your
broker to see how they handle after hours trades.
Lizzie asks…
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5. Stock Market Game related to actual stock market.?
In economics class, we play the Stock Market Game created by University of Georgia. In the
game, we start with 10k and have to invest it, but what most students do is just check
http://dynamic.nasdaq.com/dynamic/afterhourma.stm for the most active after hours, buy the
one that goes up the most, and sell it the second it goes up. The real stock market isnt like this
is it? If it is, why isn't everyone incredibly wealthy?
the site is stocksquest.coe.uga.edu
The game takes a 10 dollar trade fee. It opens and closes at normal stock market times. I think
the biggest difference that I can find (given, I know very little about stocks) is that the game
works on a ten minute delay, I believe.
Steve Winston answers:
Taxes, commissions, etc. Are all good points, but there is a fundamental problem with your idea.
There is a little ambiguity in what you wrote. You said that the students: "buy the one that goes
up the most (in after hours)". Well, how do know which one has gone up the most in after hours,
unless the after hours market is CLOSED?
If it is closed, then they have to buy in the MORNING. There are basically two ways to
accomplish this:
1) With a Limit order (in which you set your maximum price). If the price you set is too low, your
order won't get filled. If the price is too high, you reduce your chance for profit.
2) With a Market order, you basically are saying: "I don't care what it costs, I just want the
stock." You can obviously see the problems with this approach for day trading. If your theory is
correct, this price will likely be much higher than the afterhours price.
Of course, you are also making the assumption that the stock will always be higher the next
day, which is quite a risk.
Update: Did you say that the game has a ten minute delay? So when you put an order in, do
you get the 10-minute delayed price? If so, that's is COMPLETELY RIDCULOUS, because you
can make decisions based on future (10-minute) values. How can you make a wrong decision,
unless you have to keep the stock for at least 24 hours? Based on that info, my answer is: "No,
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6. the real stock market will not let you purchase stocks based on what their value 10 minutes
earlier was."
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