How do I do extended trading?

What is extended trading?

Extended trading occurs outside the regular market hours (9:30 am EST to 4 pm EST).

American exchanges (NYSE, AMEX, NASDAQ, etc) allow for trading outside of the typical trading hours as follows: Pre-market Trading begins at 4:00 am EST - 9:30 am EST. After-hours trading begins at 4:00 pm and closes at 8:00 pm EST.

Canadian exchanges (TSX, NEO, TSXV, etc) allow for trading outside of the typical trading hours as follows: After-hours trading begins at 4:15 pm EST - 5:00 pm EST with no pre-market hours trading.

What is the difference between regular hours and extended hours?

The main difference is the trade volume seen in the exchanges during these times. Aside from the lower volume, there are many brokers who do not provide extended hours trading at all. Additionally, when trading during extended hours, one can not place market orders and can only place limit orders.

What are some cons in trading extended hours and what to look out for when trading extended hours?

Because of the absence of market orders, there can be a large spread between the bid and ask price which induces volatility in a stock price which sometimes may result in a stock jumping in price in a short amount of time. Additionally, with low volume during extended hours, some orders on stocks with low volume may not trade at all as there are no buys that a seller can find at their favourable price and vice versa.

What are some pros in trading extended hours?

Trading in extended hours can be beneficial in anticipation of market news such as earnings report (ER) or other anticipated news that may happen outside of market hours. Having access to a brokerage that allows for this will give you peace of mind in that you have more control when there is volatility in a stock outside of market hours.

Broker Specific Instructions

• Weathsimple Does not offer Extended Hours Trading as of April 10, 2022