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Extended-Hours Trading Rules
The extended-hours market
Rules for Extended-Hours Trading
Possible risks to consider when trading extended hours
Extended-Hours Trading may affect opening stock prices
Reminders to our clients
Rule changes
The extended-hours market
Orders for the Extended-Hours Trading sessions are routed to a market maker
or an electronic communication network (ECN) for execution.
An ECN performs functions similar to a marketplace by providing a computerized
order matching system that is used to display and execute securities orders.
An ECN is a matching service set up to match buy and sell limit orders for
securities. However, if there are no buy orders for a particular stock displayed
on an ECN, an investor who places an order to sell that stock has to wait
for a matching buy order to come in at his/her price before an order execution
can take place. Because of the way ECNs function, buyers and sellers trading
through an ECN may experience significant delays before their orders are filled,
and some orders may only be partially filled or may not be executed at all.
Separate
trading session – The
A.M. and P.M. Extended-Hours Trading sessions are completely separate and
independent trading sessions. Orders placed for A.M. or P.M. sessions will
not supercede or replace orders submitted to traditional securities markets
for normal market hours trading sessions, or for orders submitted during another
extended-hours session. Orders placed solely for A.M. or P.M. sessions that
are not executed or canceled will expire at the end of that session and will
not carry over to the next trading session.
Session
hours – You
will have access to both pre-market (A.M.) and after-market (P.M.) Extended-Hours
Trading sessions on official exchange days, not including official exchange
holidays. In the event that the exchanges close early, TD AMERITRADE may offer
an extended-hours P.M. session.
- A.M. Extended-Hours Trading session: 8:00 a.m. through 9:15 a.m. ET,
Monday through Friday.
- P.M. Extended-Hours Trading session: 4:15 p.m. through 6:30 p.m. ET,
Monday.
TD AMERITRADE reserves the right to change our hours of operation for Extended-Hours
Trading at any time. TD AMERITRADE Extended-Hours Trading sessions, or any
security available to be traded therein, may be temporarily or permanently
suspended at our discretion without prior notice.
Placing
orders – Orders
for the Extended-Hours Trading sessions may be placed on our Web site. When
placing orders on the Web site, please make sure you select the appropriate
session.
- A.M. extended-hours orders may be placed anytime except 9:15 a.m.-
9:30 a.m. ET on regular market days.
- P.M. extended-hours orders may be placed anytime.
A.M. extended-hours orders placed during a prohibited time period may be
rejected or canceled as too late to enter.
Executing
orders – Orders
for each Extended-Hours Trading session will not be eligible for execution
until we officially open the session and will cease at our official closing
of the session.
- A.M. Extended-Hours Trading session: 8:00 a.m. to 9:15 a.m.
ET, Monday through Friday.
- P.M. Extended-Hours Trading session: 4:15 p.m. to 6:30 p.m.
ET, Monday through Friday.
Orders for Extended-Hours Trading sessions are routed to a market maker or
an Electronic Communication Network (ECN) for execution. TD AMERITRADE Izone
cannot guarantee that extended-hours orders entered prior to 8 a.m. ET will
not be executed before 8 a.m. ET. Because some ECNs begin matching orders
prior to 8 a.m., an extended-hours order might execute before 8 a.m.
Securities
offered – We
offer one of the widest selections of securities eligible for Extended-Hours
Trading.
- Extended-Hours Trading offers over 13,000 NASDAQ/NMS® securities
and NYSE® and AMEX® listed securities.
Some securities eligible to be traded during the extended-hours sessions
may not be available due to lack of trading interest during an Extended-Hours
Trading session.
Order
types – You
may place only unconditional limit orders to buy or sell securities. A.M.
and P.M session orders are good for the day only. Options, mutual funds, and
bonds do not trade during our Extended-Hours Trading session; orders for these
types of securities will be rejected or canceled. Sell-short, stop orders,
or orders with special instructions – all or none (AON), do not reduce
(DNR), or fill or kill (FOK) – will not be accepted.
Quotes – You’ll be
able to get Extended-Hours Trading quotes online from SnapTicket™. Extended-hours
securities quotes may differ significantly from regular session closing prices,
and may not include quote information from all market participants.
Canceling
and editing orders – As
long as your extended-hours order has not already been executed, you can attempt
to cancel or edit it. You may submit a cancellation or edit for an order on
our Web site, or by contacting a broker. Broker-assisted cancellations are
free of charge. Broker-assisted edits incur a broker-assisted commission charge.
Open
orders – Unexecuted
orders from the regular session do not carry over into the Extended-Hours
Trading session. A.M. and P.M. Extended-Hours Trading orders are for that
session only. Unexecuted orders will not carry over to another session. If
an A.M. or P.M. Extended-Hours Trading order is not executed, it will automatically
expire at the end of its session.
Fees
and trade settlement – Fees
for Extended-Hours Trading are different from the regular trading session.
Please see the complete fee schedule. Extended-hours trades will settle three
business days from the date the order is executed, just like orders placed
during regular session hours.
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Rules for Extended-Hours Trading
A.M. extended-hours orders can be placed at any time, with the exception
of between 9:15 a.m. and 9:30 a.m. ET, Monday through Friday. The A.M. extended-hours
session is from 8:00 a.m. to 9:15 a.m. ET, Monday through Friday, excluding
market holidays.
P.M. extended-hours orders can be placed at any time; however, the session
hours are from 4:15 p.m. to 6:30 p.m. ET, Monday through Friday, excluding
market holidays.
Orders for the extended-hours session may be placed on our Web site. Please
be sure to indicate the appropriate session. Carefully review this information
on the Review Order page.
Your extended-hours order will be processed by TD AMERITRADE and routed through
our clearing firm to a market maker or an electronic communications network
(ECN).
Currently, over 13,000 NASDAQ/NMS securities and NYSE and AMEX listed securities
are available for trading during the Extended-Hours Trading sessions.
Only unconditional limit orders (the order cannot have all or none, do not
reduce, or fill or kill special instructions) are currently accepted for
Extended-Hours Trading. Stop orders and orders to sell short a security will
not be accepted. Round lot orders (shares in increments of 100) normally increase
the likelihood of your order executing in Extended-Hours Trading. Remember
that for your order to receive an execution through an ECN, there must be
a matching order on the other side of the market. If no matching order exists
at the time you place your trade, you may experience delays in receiving an
execution, or your order may not be executed at all.
All extended-hours orders are good only for the designated Extended-Hours
Trading session. Extended-hours orders that do not execute will expire at
the end of the session, and do not carry over to the next regular session
or the next Extended-Hours Trading session.
A.M. extended-hours orders received between 9:15 a.m. and 9:30 a.m. ET may
be rejected or canceled as too late to enter for the A.M. Extended-Hours Trading
session. Extended-hours orders received after this time may be routed for
the following A.M. Extended-Hours Trading session. Be sure to verify your
order status online.
Lower trading activity, which is likely to occur during Extended-Hours Trading,
may result in wider spreads and greater price fluctuation with a lower likelihood
of order execution.
Quotes are available on our Web site from SnapTicket™. Extended-hours
quotes may differ significantly from regular session closing prices.
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Possible risks to consider when trading in extended-hours sessions
It’s important to understand the differences between Extended-Hours Trading
and the regular session. Before deciding to trade during an Extended-Hours
Trading session, be aware of the associated risks. Extended-Hours Trading
may not be appropriate for every investor. Extended-Hours Trading is likely
to offer very limited trading compared to the regular hours of the securities
markets. It may be more difficult to obtain order executions.
Liquidity
may be lower – Lower
trading activity may result in a lower likelihood of your order being executed.
In addition, there may be a number of orders ahead of yours that will be filled
by incoming matching orders before your order can be filled. It is possible
that your order will not be executed at all, or only partially executed.
Availability
of quotes – It
is important to understand that the quotes may be delayed, may reflect only
the securities closing price, or may not include information from all extended-hours
market participants. Information providers and TD AMERITRADE make no assurances
that clients may have access to all prices available in the extended-hours
market.
Prices
may fluctuate more – Due
to limited trading activity, there may be greater price fluctuation and wider
spreads between the best bid and ask prices than seen during the regular session.
There is no assurance that clients will have access to all prices available
in the extended-hours market.
News
releases – Many
companies release stories or earnings information after the close of the securities
markets. This may create wide price fluctuations in Extended-Hours Trading.
Competition
from other traders – Many
participants in Extended-Hours Trading are professional investors who work
with large institutions. These institutional investors may have access to
more current information than individual investors.
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Extended-Hours Trading may affect opening stock prices
When the securities markets open, the opening price of stock does not always
match the closing price of that stock from the previous day. If you place
market orders for execution at the beginning of the securities markets regular
trading session you should be aware that overnight events may impact the price
of a stock between market close and market open.
Orders placed after the securities exchanges have closed accumulate overnight
and are evaluated by market participants before the market opens the following
morning. The supply and demand indicated by these orders is one of the factors
used to determine the opening price of a stock.
Publicly traded companies often wait until the securities markets close at
4 P.M. ET to make major news announcements such as earnings reports. These
announcements can, and often do, affect both Extended-Hours Trading activity
and the next day’s opening prices.
Professional investors often have been trading in extended-hours sessions
for many years. Their Extended-Hours Trading activity may influence the opening
price of a stock.
As individual investors begin trading in extended-hours, their trades may
also affect the next day’s opening prices of certain stocks.
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Reminders to our clients
As described above, Extended-Hours Trading is quite different from trading
during the securities markets regular hours, and you may experience greater
market risk. Please be sure you are familiar with the trading rules applicable
to the Extended-Hours Trading sessions before participating. All accounts
with TD AMERITRADE are self-directed and you are solely responsible for, in
your discretion and at your own risk, implementing or adopting any investment
decision or trading strategy.
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Rule changes
Our Extended-Hours Trading rules are subject to change without prior notice.
By participating in Extended-Hours Trading, you are deemed to understand and
agree to the unique risks of investing during Extended-Hours Trading sessions
and agree to abide by these Extended-Hours Trading rules. To review any rule
changes, please review these Extended-Hours Trading rules often.
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