Day Trading Vs After-Hours Trading

Based on FINRA (Financial Industry Regulatory Authority), day trading is the buying and selling of a similar stock on a single day.

It commonly takes place between the starting and the closing time of certain market exchanges.

The after-hours trading, also known as extended-hours trading, comes about prior to or after regular trading hours, which usually differ depending upon the market being invested through.

Day Trading

Futures

Futures day traders have the ability to start an account for as low as $3000.

In addition, margins, which are great security essential in order to enroll an account, are higher for after-hours trading than day trading.

The trading position can tap out the distinction between having to pay a $500 margin as opposed to $4,000.

The hidden disadvantage is that the traders need to close their positions by the closing of the market each and every day.

Futures trading times are divided into 2 sessions. First is the Regular Trading Hours, which falls between 9:30 in the morning up to 4:15 in the afternoon, Eastern Standard Time (EST).

The second one is the Extended Trading Hours, which can take place from 4:30 in the afternoon up to 9:30 in the morning, EST.

After-hours trading is going to belong to the following business day.

Equities

In the USA stock markets, one should have at least $25000 account size to be able to act as a day trader.

In the New York Stock Exchange, the trading usually occurs between 9:30 in the morning and 4 in the afternoon, Eastern Time.

To be able to participate in after-hours trading, the investor needs to have a high net worth.

When the investor qualifies, he is then able to trade outside of the regular trading hours or four hours more after the closing time.

Today, with the upsurge of Electronic Communications Networks or ECN that fit sellers and buyers, anyone can already trade in the formerly exclusive market.

This form of trading is recognized for its lower quantity and prominence of greater institutional investors.

Options

Options are described as contracts or agreements that give the proprietor the right to perform a day trade, which involves buying and selling a stock or other instrument (like the forex or any cryptocurrency) at a fixed price in the near future.

They do not come with an after-hours period and has to be bought and sold within regular market hours of the futures or stock markets.

Exclusions to options day trading are options determined by indexes, including the VIX, which buy and sell for an extra quarter-hour after the closing time.

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