Should you consider trading in extended hours?

Looking to stay ahead of the curve? Extended hours trading at Investor’s Edge gives you more time to act on market-moving news and opportunities before the opening bell or after the close. Available for eligible U.S. stocks and ETFs, this added flexibility can help you react faster and position your portfolio more proactively.

You can place trades before the market opens — from 8:05 am to 9:29 am ET — and after it closes — from 4:00 pm to 6:00 pm ET on regular U.S. market days. On early-close days, typically the day before a holiday or long weekend, the morning extended market session remains unchanged while the afternoon extended session runs from 1:00 pm to 5:00 pm ET.

Yes, from 4:15 pm to 5:00 pm ET. TSX after-hours trades are limited to the stock’s official closing price. To place this type of trade, simply call Investor’s Edge.

At Investor’s Edge, extended hours trading is available for stocks and ETFs listed on the NYSE, NASDAQ or NYSE American. OTC (over-the-counter) stocks don’t qualify.

You can place buy or sell orders, short sell and buy to cover orders for eligible U.S. equities or ETFs in all account types. You can also short sell and place buy to cover orders.
All orders must be limit orders, which means you need to specify the highest price you’re willing to pay for the stock or the lowest price you’re willing to accept for a stock sale.

Keep in mind that foreign currency conversion is not available in extended hours. This means you need sufficient U.S. cash to cover the cost of any trade placed in the extended hours.

The stock’s last transacted price is visible when you enter an order, but the current bid and ask price provide a better indication of the stock’s current price level. The stock’s last price may not represent a recent transaction, because trading volume is typically much lower in the extended hours.

Only U.S. listed stocks or ETFs that trade on NASDAQ, NYSE or NYSE American are currently eligible for extended hours online trading with Investor’s Edge. Options, CDRs, structured notes, fixed income and mutual funds can’t be traded outside of regular market hours. You’re of course free to enter orders for those products at any time — the orders become active during regular market hours.

The main risk in extended hours trading is low liquidity. This occurs because there are many fewer participants as compared to regular market hours trading — as a result, trading can be more volatile and bid-ask spreads can be wider. This can make it difficult or at times impossible to have your order filled at a specified price. 

The increased volatility in the extended hours can also make it difficult to read some technical market signals or understand investor sentiment around a particular development.

This is where extended hours can really shine. Whether you're an active trader or a long-term investor, having more time to react can make a difference.

• Act on breaking news: Earnings releases, economic data, and geopolitical developments don’t wait for 9:30 am. With extended hours, you don’t have to either.
• Respond to global market moves: Many international markets are open while U.S. exchanges are closed. When global developments create volatility, you can take action on U.S. stocks that are tied to those events.

Some U.S. companies are dual-listed and trade overseas outside of regular U.S. hours. Extended trading lets you respond in real time.

Extended hours trading gives you the freedom to react on your terms — and the potential to make timely, informed moves when opportunity strikes. 

Trade online or on the go with the mobile platform. Either way, you’re in control.