EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is After-Hours Trading?
After-Hours Trading on the Nasdaq can take place after market close from 4-8pm EST or in the pre-market hours from 4-9:30am EST.
Pre- and Post-market trading used to be reserved for large institutional investors or high net worth individuals, but is now made possible through the improvements to electronic trading networks and the demand from individuals trading from their computers at home.
Interestingly, institutional investors can trade anonymously on the after-hours Nasdaq market, such that virtually no one knows what positions they take during that time. This is called trading in “dark pools of liquidity.” Traders on the after-hours Nasdaq cannot make certain kinds of trades or use certain instruments.
Most trades have to be plain vanilla stock trades, but shorting is allowed. Mutual funds, bonds, and most options do not trade after-hours. No single market will trade 24 hours a day, and this is largely due to the need to settle the books before a new day starts.
Electronic Communications Networks (ECNs) have also allowed traders to access markets for foreign currencies on a global scale. The foreign exchange market, or Forex, trades 24 hours a day. The main players in this market are banks and institutions, but individuals can also trade in micro or nano lots of currency. The Forex market also facilitates forwards, swaps, futures, and options on currency.
What are the Basics of Stocks?
This article and the ones that follow should give you a solid foundation in the knowledge of stocks and their use as...
What is the minimum investment in a typical hedge fund?
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How Can I Establish a SEP IRA?
SEP IRAs do not have to be established until taxes are filed for the year, and it can be done quickly
What is Accrued Interest?
Accrued Interest applies to a bond or loan, accounting for the interest that is calculated per diem for the time
What is Effective Annual Interest Rate?
The effective annual interest rate is the actual annual interest rate on a bond/loan when it compounds more than once/yr
What is an Inverted Yield Curve?
An inverted yield curve occurs when long-term treasuries have a lower yield than short-term treasuries
What is the foreign earned income exclusion?
Americans working abroad often enjoy a few tax advantages. One of which is the Foreign Earned Income Exclusion
What is Underwriting?
Underwriting is the process through which risks are accepted by an institution. Underwriting is the assessment of risk
What is Mortgage Fraud?
Mortgage fraud is misrepresentation in mortgage contracts designed to benefit one or more parties to the contract
What is the Broadening Wedge Ascending (Bearish) Pattern?
The Broadening Wedge Ascending pattern forms when a currency pair price progressively makes higher highs and higher lows