U.S. Electronic Trading Guide: How to Navigate the After-Hours Session on this 24-Hour Battlefield

Have you ever encountered this situation? Five minutes before the US stock market closes, a tech giant suddenly issues an earnings warning, and the next day it hits the limit down at open. Only then do you realize that, in the after-hours electronic trading session, smart investors had already started positioning themselves.

Why should you pay attention to the US electronic trading session? Because it is another battleground outside of traditional trading hours. After the regular US stock market session (9:30 AM to 4:00 PM Eastern Time) closes, electronic trading immediately takes over, giving global investors the opportunity to seek opportunities amid overnight risks.

When does the US electronic trading session actually trade?

First, it’s important to understand that US electronic trading mainly falls into two categories: after-hours stock trading and 24-hour futures electronic trading.

US Stock After-Hours Trading Session
The regular US stock trading ends at 4:00 PM ET, and after-hours electronic trading begins immediately, extending until 8:00 PM ET. For investors in Taiwan:

• During Daylight Saving Time (second Sunday in March to first Sunday in November): 04:00-08:00 Taiwan time
• During Standard Time (first Sunday in November to second Sunday in March): 05:00-09:00 Taiwan time

US Futures Electronic Trading Hours
Compared to stock after-hours trading, futures markets achieve true “around-the-clock trading.” Taking stock index futures as an example:

• Day session (manual trading): 09:30-16:15 ET, corresponding to 21:30-04:15 Taiwan time during Daylight Saving
• Electronic session: 16:30-09:15 ET (next day), corresponding to 04:30-21:15 Taiwan time (next day)

Note that on Mondays, futures electronic trading starts 1.5 hours later.

In comparison, domestic index futures night trading hours in Taiwan are from 15:00 to 05:00 the next day, which are shorter than international markets.

How to read US electronic trading quotes?

After understanding the trading hours, the key is knowing where to look for quotes.

Stock After-Hours Quote Inquiry
The NASDAQ official website provides a dedicated after-hours trading page where you can search for specific stocks (e.g., Tesla) to view real-time quotes. Most mainstream brokerages and analysis platforms also offer after-hours quote functions.

Futures Electronic Trading Quote Inquiry
The Chicago Mercantile Exchange (CME) official website and third-party platforms like TradingView provide real-time futures quotes. After selecting the futures product, you can see live bid and ask prices, trading volume, and other core data.

Is electronic trading really good? Beware of these pitfalls

Trading convenience is real
No geographical restrictions, allowing global investors to participate anytime; quick reactions to major overnight news; more liquidity, more transparent markets.

But risks should not be underestimated

High spread costs — Reduced trading participants lead to wider bid-ask spreads, increasing your cost compared to daytime trading, and selling prices may be lower.

High volatility risk — Unexpected news overnight can cause gaps at the next open or sharp declines. After-hours highs may never be realized during the next day’s trading.

Lack of liquidity — For some small-cap stocks or less mainstream products, there may be insufficient counterparties after hours, causing orders to remain unfilled for a long time.

Institutional advantage is obvious — Retail investors face well-armed institutional investors after hours. They have informational, capital, and technological advantages, making retail investors vulnerable.

Limit order restrictions — US after-hours markets only accept limit orders; you must set your own execution prices and stop-loss/take-profit points. If market prices move too far away, your orders may never execute.

System risk — Entirely automated matching by computers; system delays can directly impact trade execution quality.

How to rationally utilize US electronic trading

Electronic trading is not a signal to trade frequently but an additional window for observation and participation. Recommended approaches include:

Fully understand the specific rules of each platform—don’t just listen to others;
Assess your risk tolerance before participating, especially since after-hours volatility can be more intense;
Don’t be fooled by the idea of “24-hour trading opportunities”—do your homework before acting;
Use the after-hours period to observe institutional investor movements and gather reference information, rather than blindly following the crowd.

Bottom line: electronic trading offers time flexibility but does not eliminate market risks.