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This is a kind of network where there is no physical contact between seller and buyers, however, it enables them to buy, sell and communicate. After some years down the line, a new type of network, Island, changed the meaning of after hours trading. It facilitated everyone to trade at any time, any place and any day.
The major drawback for small investors in traditional trading was that they had limited or no access to trading venues. So, individuals felt that they would get advantage after trading hours before the market was reopened the next day. As, the fluctuation in the price would be same as in traditional trading, equal access for everyone was granted. There are basically three kind of after hours markets.
The ASE and NYSE have a facility of crossing sessions where matching trading orders are executed at 5:00 p.m. The trading is normally based on the prices at the time of actual closing of the exchange, i.e. 4 p.m. The PSE AND BSE conduct some post-primary sessions that takes place from 4:00 to 4:15 p.m. PCX and CHX is known to conduct such sessions up to 4:30 p.m. CHX provides an E-session also that allows trading up to 6:30 p.m. Based on similar theme, a few foreign exchange also trade some NYSE listed stocks but those hours are decided by government.
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