It works mostly like normal trading. But there is no requirement for market makers to provide quotes so of you place a big order or an order on a thinly traded stock it can be filled way off the last price.
So from what I’ve gathered (and someone correct me if I’m wrong), the stock market ‘closing’ is just the end of regular trading hours where most big trades happen. After hours, it’s more like a quieter, electronic-only session where fewer people trade, so prices can move more unpredictably. It’s kinda like how the library ‘closes’ at 10 PM, but you can still access online journals—just with way less traffic. The prices still change based on supply and demand, but since volume is lower, the swings can be wilder. Hope that helps!
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It works mostly like normal trading. But there is no requirement for market makers to provide quotes so of you place a big order or an order on a thinly traded stock it can be filled way off the last price.
So from what I’ve gathered (and someone correct me if I’m wrong), the stock market ‘closing’ is just the end of regular trading hours where most big trades happen. After hours, it’s more like a quieter, electronic-only session where fewer people trade, so prices can move more unpredictably. It’s kinda like how the library ‘closes’ at 10 PM, but you can still access online journals—just with way less traffic. The prices still change based on supply and demand, but since volume is lower, the swings can be wilder. Hope that helps!