In the U.S. equity markets, the standard trading window, commonly referred to as the regular cash session—operates from 9:30 AM to 4:00 PM ET on business days. While this is the period most traders are familiar with, market activity and price movements are not confined to these hours. Extended trading takes place during the pre-market and after-hours sessions, which can be especially important around major economic announcements or corporate earnings releases. During such events, a significant share of trading volume may occur outside the primary session, making these periods essential to monitor.

Pre-market and after-hours trading enable market participants to react to developments and manage exposure to potential volatility before the cash session begins. This flexibility allows traders to act on opportunities as they arise, rather than waiting for the market to reopen, at which point price gaps often occur and previously available opportunities may have already disappeared.

Extended trading in U.S. Stock Market are divided into several distinct sessions:

• Pre-market: Runs from 4:00 AM to 9:30 AM ET.

• Cash Market: The regular trading session, operating from 9:30 AM to 4:00 PM ET.

• Post-market (After-hours): Takes place from 4:00 PM to 8:00 PM ET.

• Overnight: A feature offered by some brokers, allowing certain equities to be traded continuously, 24 hours a day, five days a week.

Building on this structure, Bybit has introduced an enhanced offering that allows clients to trade a select group of US Stock CFDs around the clock, five days a week. By incorporating an overnight trading session alongside the traditional pre-market, cash, and post-market hours, Bybit significantly expands access to after-hours and extended-hours trading opportunities.

Extended Hours Trading and Margin Requirements

When engaging in extended-hours trading, it is essential to take margin requirements into account. On our platform, margin requirements remain consistent with those applied during the regular trading session. However, traders should be mindful that extended-hours markets typically experience higher volatility and reduced liquidity, which can amplify the risks associated with trading on margin.

Margin trading inherently magnifies both profits and losses. If the market moves against your position, you may face a margin call requiring additional funds to maintain your position. This risk can become more pronounced during extended-hours sessions, where sudden and wider price swings are more common.

Lower liquidity outside of standard market hours can also make it more challenging to manage positions effectively. A lack of sufficient buyers or sellers at your desired price may delay order execution, making it harder to exit trades promptly and potentially increase losses.

For these reasons, effective risk management is critical when using margins in extended sessions. Traders should consider reducing position sizes or applying lower leverage compared to what they might typically use during regular hours to account for the unique conditions of these markets.

Benefits of Extended-Hours Trading

One of the most significant advantages of extended-hours equity trading is the ability to react immediately to corporate earnings announcements. Since the majority of U.S. companies release earnings outside of the regular cash session—research suggests that around 95% publish results either before the market opens or after it closes—extended trading sessions provide access to these critical market-moving events.

When earnings are released, investors and traders quickly reprice securities based on updated guidance, often resulting in substantial volatility within minutes of the announcement. For instance, Nvidia (NVDA) surged more than 10% in post-market trading following the release of its Q4 2023 results, while Alphabet (GOOGL) declined by as much as 8% after-hours on weaker-than-expected advertising revenue. These sharp moves often create sizeable price gaps at the cash open the following day.

Beyond earnings, extended-hours trading also allows market participants to respond to other unexpected developments—such as merger and acquisition headlines, geopolitical events, or macroeconomic news—that may occur outside regular trading hours. Having access to the market during these times enables traders to capture opportunities or adjust risk exposure in real time.

Extended trading also offers practical benefits from a convenience perspective, particularly for participants located outside the United States. Pre- and post-market sessions provide flexibility to trade at times more aligned with local time zones, rather than being restricted to U.S. market hours.

These advantages are further enhanced by the introduction of the overnight trading session now offered by Pepperstone. This feature allows select U.S. equities to be traded continuously, 24 hours a day, five days a week, which is especially valuable for traders in Asia. Not only does this create the ability to respond to breaking overnight news, but it also provides greater flexibility to manage positions and mitigate risk when unexpected headlines emerge.

Drawbacks of Extended-Hours Trading

While extended-hours trading offers important advantages, it also comes with certain risks and limitations that traders should carefully consider:

Lower Liquidity

Trading volumes are generally concentrated during the regular cash session, making price action during extended hours less liquid except during major events such as earnings releases.

What this means for you: With fewer participants in the market, bid-ask spreads often widen. This means you may end up paying more to buy a stock or receiving less when selling compared to regular hours. Lower liquidity can also make it more difficult to execute trades quickly, particularly at your preferred price level.

Higher Volatility

Reduced liquidity often translates into greater price fluctuations. While some traders may view this increased volatility as an opportunity, it also raises the risk of rapid and unexpected losses if the market moves against your position.

Wider Spreads

Both lower liquidity and higher volatility typically result in wider bid-ask spreads compared to the cash session. This is especially pronounced at the start and end of extended-hours trading, when market depth is at its thinnest.

Trading Specification

• Leverage up to 5x

• Trading Fees

  • 0.02 USD per lot with minimum of 0.2 USD per order

• Swap

  • Long 6%

  • Short -2.5%

• Max Order Size (Max Lots): Up to 1,000

Supported Trading Pairs

• AAPL

• ALIBABA

• AMAZON

• AVGO

• CLSK

• COIN

• GOOG

• INTEL

• JD

• MARA

• META

• MSTR

• NFLX

• NVIDIA

• ORCL

• PLTR

• PYPL

• RIOT

• TSLA

• TSM