After-hours trading starts at 4 p.m. U.S. Eastern Time after the major U.S. stock exchanges close. The after-hours trading session can run as late as 8 p.m., though volume typically thins out much earlier in the session. Trading in the after-hours is conducted through electronic communication networks.After-hours trading is something traders or investors can use if news breaks after the close of the stock exchange. In some cases, the news, such as an earnings release, may prompt an investor to either buy or sell a stock.The volume for a stock may spike on the initial release of the news but most of the time thins out as the session progresses. The amount of volume generally slows significantly by 6 p.m. There is a substantial risk when trading in illiquid stocks after-hours. Not only does volume sometimes come at a premium in the after-hours trading sessions but so does the price. It is not unusual for the spreads to be wide in the after-hours. The spread is the difference between the bid and the ask prices.Become a supporter of this podcast: https://www.spreaker.com/podcast/investment-terms--4432332/support.

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