Similarly, orders entered during the after hours session will not roll over to the next day s session. For settlement and clearing purposes, trades executed during the after hours session are processed as if they had been executed during the day session. Whatever is happens in this market remaining to be seen. One thing for sure is that times are changing and financial firms, market markers and exchanges are in the process of determining how best to handle this latest development. Risk of lower liquidity.
Liquidity refers to the ability of market participants to buy and sell securities.
Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, traders are more likely to pay or receive a competitive price for securities purchased or sold. Risk of higher volatility. Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings.