What is pre-market and after-hours trading and how do you trade it?
Pre-market and after-hours trading enables you to trade before the market opens and after it closes – giving you the flexibility to respond to price movements outside regular hours. Here’s how it works.
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What is pre-market trading?
Pre-market trading enables you to trade a market before the main session opens. For example, most Hong Kong traders can only access US stock markets from 10.30pm to 5am (UTC +8) – but with our 24/5¹ offering on around 700 US shares, you can trade well before the opening bell.
This means you can react to overnight news, earnings reports or global events as they happen – not hours later when the market opens. We offer extended and pre-market hours on All Sessions stocks, indices and options.
What is after-hours (post-market) trading?
After-hours trading enables you to trade after the main session closes. With our 24/5¹ offering on around 700 key US shares, you can trade well after the closing bell.
This is particularly useful if a company reports earnings after hours, or if news breaks that could move the market overnight. You won't need to wait until the next day to act.
Our exclusive extended hours on All Sessions stocks, indices and options enable you to trade after hours
Learn what moves pre-market and after-hours prices
Pre-market and after-hours prices can move quickly based on earnings releases, economic data, central bank decisions or unexpected news.
For example, companies like Apple, Tesla, Netflix and Amazon often report results outside regular trading hours. If you're not set up to trade at these times, you may not be able to respond to the initial price move – and by the time the market opens, the opportunity may have passed.
Keep in mind that prices can be more volatile outside standard hours, as there's typically less trading activity and liquidity.
Choose a pre-market or after-hours strategy
There are a few ways to approach pre-market and after-hours trading. Here are two common strategies:
Trading breakouts
Breakouts typically follow a period of consolidation – when an asset’s price is relatively static after a strong price move in either direction. Consolidation often precedes an announcement, as traders and investors are waiting to see how they should act.
Breakout traders will look for consolidation in the market, then open positions on the back of relevant news announcement. Their aim is to take full advantage of the resulting price move.
Technical indicators that can help you assess when breakouts could occur include Average True Range and Bollinger Bands.
Hedging gap risk
Gapping is when a stock opens significantly higher or lower than where it closed the day before. If you're holding shares and worried about a gap down, you could take a short CFD position outside regular hours to hedge your exposure.
For example, if you hold Tesla shares and expect bad news overnight, you could short Tesla via CFD during after-hours trading. If the stock falls, your CFD profit could help offset the loss on your shares. If it rises, your shares gain value – offsetting the loss on your short position.
Remember, with us you can only trade derivatives via contracts for difference (CFDs)*.
*CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.
Login or create your CFD trading account
Login or create a trading account with us, and you’ll be able to trade pre-market and after hours with CFDs. These are financial derivatives, which enable you to take a position on the price of a market rising by going long, or falling by going short.
We offer 24/51 trading on 700 key US shares using CFDs.
CFD trading
You’ll make a prediction on the direction of a market’s price movements, with your profit or loss determined by the accuracy of your prediction and the size of the market movement. CFD trading may enable you to offset profits against losses – making CFDs particularly useful for hedging risk. Keep in mind that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Select a market
Shares
We offer 700 key US shares 24/5¹ including Alphabet, Amazon, Apple, Microsoft and Tesla.
Indices
We offer over 35 more weekly trading hours than our nearest competitor on popular indices including the FTSE 100, Germany 40 and Wall Street 2. These markets enable you to get exposure to a country’s most popular stocks from a single position.
Options
We offer options trading with extended hours on selected weekly and monthly indices options contracts. Our daily options do not have extended hours because we are the market maker – meaning our daily options don’t exist in the underlying market.
- Standard options hours
- Extended options hours
| Market | Daily (UTC +8) | Weekly (UTC +8) | Monthly (UTC +8) |
| FTSE 100 | 3.30pm – 12.30am* | 4.15pm – 12.30am | 4.15pm – 12.30am |
| Germany 40 | 3.30pm – 12.30am* | 4.15pm – 12.30am | 4.15pm – 12.30am |
| Wall Street | 3.30pm – 5am* | 10.30pm – 5.15am | 10.30pm – 5.15am |
| Gold | 3.30pm – 2.30am** | 6pm – 2.30am | 6pm – 2.30am |
| Silver | 3.30pm – 2.30am** | - | 6pm – 2.30am |
| Oil | 3.30pm – 3.30am** | 6pm – 3.30am | 6pm – 3.30am |
*Our daily options on the FTSE 100, Germany 40 and Wall Street usually open at 3.30pm on Monday (UTC+8), closing a few minutes before their various expiry times. FTSE 100 and Germany 40 daily options will reopen at 1.10am (next day), Wall Street will reopen at 5.40am (UTC +8), running to the following day’s close before closing for the weekend at the Saturday early morning expiry.
**Our daily options on gold, silver and oil usually open at 3.30pm on Monday (UTC +8), closing a few minutes before their various expiry times. They’ll reopen at 5am (UTC +8) the next day, and run until that day’s close before closing for the weekend at the Saturday early morning expiry.
| Market | Daily (UTC +8) | Weekly (UTC +8) | Monthly (UTC +8) |
| FTSE 100 | 3.30pm – 12.30am* | 12.30am – 4pm | 12.30am – 4pm |
| Germany 40 | 3.30pm – 12.30am* | 12.30am – 4pm | 12.30am – 4pm |
| Wall Street | 3.30pm – 5am | 5.15am – 10.30pm | 5.15am – 10.30pm |
| Gold | 3:30am – 2:30am** | -[Only during standard hours] | -[Only during standard hours] |
| Silver | 3:30am – 2:30am** | - | -[Only during standard hours] |
| Oil | 3.30pm – 3.30am** | -[Only during standard hours] | -[Only during standard hours] |
*Our daily options on the FTSE 100, Germany 40 and Wall Street usually open at 3.30pm on Monday (UTC +8), closing a few minutes before their various expiry times. FTSE 100 and Germany 40 options will reopen at 1.10am (next day), Wall Street will reopen at 5.40am (UTC +8), running to that day’s close before closing for the weekend at the Saturday early morning expiry.
**Our daily options on gold, silver and oil usually open at 3.30pm on Monday (UTC +8), closing a few minutes before their various expiry times. They’ll turn back on at 5am (UTC+8) the next day, and run until that day’s close before closing for the weekend at the Saturday early morning expiry.
Understand the risks of pre-market and post-market
Trading outside regular hours comes with some additional risks to be aware of:
Lower liquidity than the main market session: many market participants prefer to trade during the main session – when prices are generally more stable – meaning there can be fewer active participants to fill the other side of trades out-of-hours
Higher volatility than the main market session: lower liquidity can result in more dramatic swings in prices, which can be good or bad – depending on your individual risk appetite
Wider spreads than the main market session: the spread is the difference between the buy and sell price on offer. Spreads can widen when volatility rises or liquidity falls – both of which occur more frequently out-of-hours
You can manage your risk using stops and limits, which automatically close your trade when the price hits a pre-determined level. Guaranteed stops are the best way to cap risk because these always close your trade at the exact level you specify – even if the market moves quickly or ‘gaps’. A small premium is payable if a guaranteed stop is triggered.
Place your trade
To place your first pre-market or after-hours trade, create an account and go to our web trading platform or mobile trading app. Once there, follow the steps below:
- Select your market
- Decide whether to sell or buy
- Choose your position size
- Set your stops and limits
- Place your deal
Alternatively, you can practise using our platform with a demo account. You’ll get S$200,000 in virtual funds to build your confidence before trading the live pre-market and after-hours market sessions.
FAQs about pre-market and after-hours trading
What time can I trade US shares with IG?
You can trade around 700 US shares 24/51 – from Monday 8am to Saturday 5am (SGT). During daylight savings, hours shift to Monday 7am to Saturday 4am (SGT). This means you can access the market before it opens, throughout the main session and well after it closes.
What's the difference between pre-market, after-hours and 24/5 trading?
Pre-market trading is before the main session opens – typically when overnight news or earnings reports are released. After-hours (or post-market) trading is after the main session closes, which is useful if news breaks late in the day. Our 24/51 trading on 700 US stocks covers both pre-market and after-hours plus the main session – so you can trade nearly any time from Monday to Friday without being limited to standard market hours.
What are the risks of trading outside regular hours?
Trading pre-market and after-hours comes with some additional risks compared to the main session. Spreads are typically wider due to lower liquidity, which means it might cost more to enter and exit positions. Prices can also be more volatile, as there are fewer active traders and larger price swings can happen on smaller volumes. It's important to understand these risks and consider using stop-losses to manage your exposure before you trade.
1 Trading hours run from Monday 8am to Saturday 5am (SGT). During daylight savings, hours shift to Monday 7am to Saturday 4am (SGT).
2 Based on analysis of the FTSE 100, Germany 40 and Wall Street offering from prominent UK competitor websites. Information correct to the best of our ability as of 30 March 2020.
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Disclaimers:
- All forms of investments carry risks, including the potential loss of all or part of your principal amount invested. The value of an investment product may rise or fall, and may also become valueless. Past performance is not indicative of future results. Please ensure that you fully understand, and are aware of, the risks and costs involved.
- Trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits. Refer to the Risk Disclosure Statement and Risk Fact sheet.
- IG Asia Pte Ltd (Co. Reg. No. 200510021K)("IG") is regulated by the Monetary Authority of Singapore and holds a capital markets services licence.
- IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
- The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
- This advertisement has not been reviewed by the Monetary Authority of Singapore.
