What is "After-hours dealing" meaning?

After-hours dealing refers to the practice of trading stocks, securities, or other financial instruments outside the regular trading hours of stock exchanges. This usually happens in pre-market or extended trading sessions.

Example

Investors can place buy orders for tech stocks in the after-hours market following a positive earnings report, even though the official market has closed.

How is "After-hours dealing" used in business?

In finance, after-hours dealing allows traders and investors to react to breaking news or events that occur outside of regular market hours, impacting prices before the market opens again.

Pro Tip

Keep in mind that after-hours dealing can be riskier due to lower liquidity and wider spreads, so it’s important to be cautious and informed before participating.

Related Terms

Extended Hours Trading, Market Liquidity, Stock Trading