by 
The Curious Bag
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The equity markets have traditional hours, yet breaking news can affect stock prices overnight or early in the morning. This is when investors can employ after-hours trading.
Features
After-hours trading is the trading of stocks by investors and institutions before or after the traditional hours of the U.S. equity markets--9:30 a.m. to 4:00 p.m.
History
Prior to the 1990s, after-hours trading was restricted to large institutions, professional traders and preferred clients of the large brokerage firms.
ECN
An Electronic Communication Network is an electronic trading system that matches buyers with sellers and is registered with the SEC. These networks allow individual and professional investors to engage in after-hours trading.
Benefits
One benefit of after-hours trading is being able to take advantage of price moves that occur when news is released. This added flexibility can help to reduce losses and increase profits.
Risks
There are numerous risks associated with after-hours trading--liquidity, volatility, the inability to see after hours quotes, computer delays and competition with professional traders.
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