After Hours Volatility Question

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wiesman02

Why is after hours trading so volatile ?


I really don't understand it. For instance, I'm looking at CVTX's AH quotes.

For instance: The stock closes at 10.76. A few trades later, the damn thing is down to 10.38 AH.


Why such a large drop ? One trade went from 10.76 to 10.38. Can someone possibly explain this ?
 
when volume is low, it does not take a very big order to have a relatively large effect on price, because of order imbalance. Volume tends to be low afterhours.
 
Quote from wiesman02:

Why is after hours trading so volatile ?


I really don't understand it. For instance, I'm looking at CVTX's AH quotes.

For instance: The stock closes at 10.76. A few trades later, the damn thing is down to 10.38 AH.


Why such a large drop ? One trade went from 10.76 to 10.38. Can someone possibly explain this ?
More...
There are some -fool- people that sometimes place market orders in after-hours; and get screwed prices as a result. This may cause large price swings.

The lesson: ALWAYS use limit orders after-hours.
 
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