ELI5: Explain Like I'm 5

Extended hours trading

Okay kiddo, when the stock market closes at 4:00 PM, that means no one can buy or sell stocks anymore until the next day. But did you know that some people can still trade stocks even after the market is closed? That's called extended hours trading!

Now, there are two types of extended hours trading: pre-market and after-hours trading. Pre-market trading happens before the stock market opens in the morning, usually around 8:00 AM. After-hours trading happens after the stock market closes, usually between 4:00 PM and 8:00 PM.

Now, not everyone can trade during extended hours trading. Only certain people with special accounts and permissions can do it. It's important to know that trading during extended hours can be risky, because there aren't as many people trading at those times and the prices can be a bit unpredictable.

But for some people, extended hours trading can be a good way to react quickly to news or events that happen outside of regular trading hours. They can quickly buy or sell stocks before everyone else can the next day.

So, in summary: extended hours trading is when some people can still buy and sell stocks before or after the regular stock market hours, but it can be risky and not everyone can do it.
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