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However, it's not all positive. One of the main **disadvantages** is **lower liquidity**. Because fewer people trade during off-hours, there might be fewer buyers and sellers, which can make it harder to find the price you want. This lower liquidity can also lead to wider spreads. The spread is the difference between the buying price (bid) and the selling price (ask). During regular trading hours, the spread is usually tighter because there are more people trading. In extended hours, however, the spread may widen. That means the difference between the price you buy the stock and the price you sell it at may be greater. So, your transaction costs could potentially increase, affecting your overall returns.
