What potential opportunities are provided by overnight trading?
What potential opportunities are provided by overnight trading?
Overnight trading allows reacting to breaking news when regular markets are closed, giving you flexibility to trade on your schedule and potentially seize opportunities before the next regular trading session.
What risk factors should I consider before trading overnight?
What risk factors should I consider before trading overnight?
Overnight trading typically involves lower liquidity, higher volatility, and wider spreads than regular hours. Prices may change significantly between sessions, and market-moving news can cause rapid price swings.
Is overnight trading available on weekends and holidays?
Is overnight trading available on weekends and holidays?
No, overnight trading sessions are closed if the following day is a weekend or holiday. This is because the NYSE Trade Reporting Facility (TRF) must be available the next day to report trades.
How are orders executed during overnight trading?
How are orders executed during overnight trading?
Orders are routed through Blue Ocean ATS (also known as BOATS) and Virtu Americas LLC, which passes orders to BOATS.
What happens if my overnight trade isn’t executed?
What happens if my overnight trade isn’t executed?
If your order is not filled, it will automatically expire at 4 AM ET, and you will need to place a new order in the next session if you still want to trade.
Unfilled orders do not carry over to the next trading day.
Will my account value and positions update during overnight trading?
Will my account value and positions update during overnight trading?
Yes, your account value, account balances, day change, position last price and gain/loss will be continuously updated around the clock. Please also note that account value changes now reset at 12 AM ET.
Are there any quantity or price limitations for overnight orders?
Are there any quantity or price limitations for overnight orders?
Maximum quantity per order: 100,000 shares
Maximum single order value: $500,000
How is my day trade buying power (DTBP) calculated during overnight hours?
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.
Can I modify overnight orders after they're placed?
Can I modify overnight orders after they're placed?
Yes, you can modify open/unfilled overnight orders, but only the quantity and price can be adjusted. You can change the order duration by canceling and placing a new order.
What happens if there's a corporate action on a stock I want to trade overnight?
What happens if there's a corporate action on a stock I want to trade overnight?
Depending on the type of corporate action, the stock may be halted for overnight trading. Corporate actions like mergers, name changes, stock splits, and symbol changes will result in trading halts, while cash dividend related events typically allow continued trading.
How can I see which stocks are enabled for overnight trading?
How can I see which stocks are enabled for overnight trading?
A crescent moon icon will appear next to an enabled security on the trading page.
How does overnight trading differ from extended hours trading?
How does overnight trading differ from extended hours trading?
Firstrade offers both Overnight Trading and Extended Hours Trading, giving investors even more flexibility to trade outside of regular market hours.
Overnight Trading allows trading from 8 PM to 4 AM ET.
Extended Hours Trading allows trading from 8 AM to 8 PM ET.