Pre- and post-market
Under pre- and after-hours ( English premarket dealing , English after-hours dealing ) is understood in the stock exchange system of the prior trading session and after close of trading takes place off-exchange trading .
General
In exchanges is also the exchange time set during which the trading takes place. Before the start of the stock market there is the pre-market, after the market closes the post-market. Pre- and after-hours have nothing to do with the official stock exchange because they are outside trading hours and not on the trading floor to take place and not the Securities and Exchange Commission are subject. The trade takes place through electronic trading systems of the participating market players , but not on the trading systems of the stock exchanges.
economic aspects
Market participants in the pre- and post-exchange are exclusively brokers , securities dealers , credit institutions , traders or institutional investors who conclude securities orders directly with one another without having to switch to the - closed - exchange. The pre-exchange can be a good indicator for the later exchange trading on the same trading day , the tendency of the post-exchange can in turn provide information on the next trading day of the exchange.
The market liquidity is limited in off-exchange trading of the pre- and after-hours, so that a smaller market breadth and corresponding market tightness may be.
literature
- Hans Büschgen: The Small Stock Exchange Lexicon . 21st edition. Verlag Wirtschaft und Finanz, Düsseldorf 1998, ISBN 3-87881-121-7 , p. 626 and 926 .