Trades executed in the overnight session between
8:00 PM – 11:59 PM ET are marked with a next day trade date (T+1).
12:00 AM – 4:00 AM ET are marked with a same day trade date.
Example 1
BUY 1 XYZ @ 9:00 PM ET on Tuesday
SELL 1 XYZ @ 10:00 AM ET on Wednesday
Result: 1 day trade
The buy order (9:00 PM) was placed in the overnight session between 8 PM to 11:59 PM ET so it is marked with a T+1 trade date (Wednesday).
The sell order (10:00 AM) was placed in the regular trading session so it is marked with a same day trade date (Wednesday).
Since both orders share the same trade date of Wednesday, a day trade has incurred.
Example 2
BUY 1 XYZ @ 10:00 AM ET on Wednesday
SELL 1 XYZ @ 10:00 PM ET on Wednesday
Result: Not a day trade
The buy order (10:00 AM ET) was placed in the regular trading session and is marked with a same day trade date (Wednesday).
The sell order (10:00 PM ET) was placed in the overnight trading session between 8 PM to 11:59 PM ET so it is marked with a T+1 trade date (Thursday).
Selling in the same day’s overnight session does not incur a day trade.
Example 3
BUY 1 XYZ @ 10:00 PM ET on Thursday
SELL 1 XYZ @ 11:00 PM ET on Thursday
Result: 1 day trade
Both orders were placed in the overnight session between 8:00 PM to 11:59 PM ET and are marked with a T+1 trade date (Friday).
A day trade has incurred.
Example 4
BUY 1 XYZ @ 2:00 ET AM on Friday
SELL 1 XYZ @ 3:00 ET AM on Friday
Result: 1 day trade
Both orders were placed in the overnight session between 12:00 AM to 4:00 AM and are marked with the same day trade date (Friday).
A day trade has incurred.
How is my day trade buying power (DTBP) calculated during overnight hours?
Day trade buying power is recalculated at 8 PM. Instead of allowing full DTBP, it is limited to 2X the account excess. Buying power is updated again during the regular system restart at approximately 7:30 AM on each trading day. Both cash and margin buying power can also be used for trading during the overnight session.