And what is the function for being able to compute that limit if it exists?
I think before and after market trading has been around for quite a while, but it's only been in the last few years, which I've really noticed such massive, aggressive after hours trading moving a stock several percentage points after and even before normal trading hours.
I've no idea who can trade in such HUGE volume and only speculate why they permit/accept such insane slippage on price, but there is no doubt it sets the sentiment for the next day of normal hours smaller trading.
Anyhow, it had me wondering if there is a function, a way to calculate just how much these before and after hours whales can move the price. Could they theoretically move the valuation down to zero? Is there a percentile limit or any sort of limit?
Leave a Reply