Risks from before and after the market

When trading before or after the market, users should consider the following risks:

(1) Market liquidity risk

Market liquidity refers to the ability of assets to be realized smoothly at a relatively reasonable price. If the market liquidity is sufficient and more orders are executed, investors have a better chance to buy or sell stocks at a better price. During pre-market or after-hours trading, market liquidity will generally be lower than that of regular trading hours, and pending orders in pre-market or after-hours trading may only be partially executed or not executed due to market liquidity risks.

(2) Volatility risk

Volatility risk refers to the risk of stock price changes during trading hours. In general, the more volatile a stock is, the more its price changes. Pre- or after-hours trading sessions can be more volatile than regular trading sessions. Therefore, pending orders in pre-market or after-hours sessions may be partially filled or not filled due to volatility risk. The transaction price may also be lower than the intraday transaction price.

(3) The risk of unconnected market

The price display of the same stock may be different within the pre-market or after-market period. Therefore, the transaction price of one set of pre-market or after-hours trading system may be different from the transaction price of another set of pre-market or after-hours trading system.

(4) Risk of price changes.

The trading price of stocks in the pre-market or after-hours session may not reflect the opening price of the regular trading session or the opening price of the next morning. Therefore, the transaction price during the pre-market or after-hours session may not be as ideal as the regular trading session.

(5) Risk of major news announcements

Under normal circumstances, important financial information announcements and major news affecting their stocks are usually announced outside regular trading hours. When major news is announced in the pre- or after-hours session, combined with relatively low liquidity and relatively high volatility, it may cause the stock to reach an unsustainable exaggerated price in a short period of time.

(6) Spread expansion risk

Spread refers to the difference in stock buying and selling prices. Lower liquidity and higher volatility that exist during the pre-market or after-hours hours may cause stock price differentials to widen than normal. Note: Orders before and after the market will be directly submitted to the exchange for matching and matching. Some stock orders may not be 100% guaranteed to be filled before and after the market; orders that cannot be filled will be automatically transferred to the continuous trading period for matching and matching; if the user If you want to conduct pre-market and after-market trading, you need to click “Allow” before placing an order and set a time limit.