Extended-hours trading

We’re giving you more time to trade the stocks you love.

Traditionally, the markets are open from 9:30 AM to 4 PM ET during normal business days. With extended-hours trading, you can also trade during pre-market and after-hours sessions.

Extended hours give you an extra 6 ½ hours of trading, every single trading day. Here's the breakdown:

  • Market hours are 9:30 AM–4 PM ET
  • Extended hours are 7–9:30 AM ET and 4–8 PM ET

During extended hours, the price shown on a stock's Detail page is the stock's last trade price on Nasdaq. Orders made outside market hours and extended-hours trading are queued for the start of the next regular market session, according to your instructions.

Note

Certain markets support broader extended hours.

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Potential reasons for extended-hours trading

  • Earnings announcements: The companies you own shares of may announce quarterly earnings after the market closes. Depending on the outcome, the stock’s price can move much more than it would during the regular-hours session. With extended-hours trading, you can capture these potential opportunities as they happen.

  • Activity in foreign markets: Foreign markets, such as Asian or European markets can influence prices on U.S. markets. Activity on these markets happens outside regular US market hours, and extended-hours trading allows you to capture potential opportunities around these events.

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Trading fractional shares during extended hours

Not all securities are eligible for fractional trading during the extended-hours sessions. If a security is not eligible, you can either place an order for whole shares or queue a fractional order for the opening of the next regular market hours session (9:30 AM ET). Robinhood reviews the list of eligible securities on an ongoing basis and eligibility is determined based on liquidity conditions.

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Order behavior during extended hours

Market orders

Orders placed during an extended-hours session (7–9:30 AM or 4–8 PM ET) are subject to market order collaring. They're converted to limit orders with a limit price set at 5% away from the last trade price on a Nasdaq exchange at the time the order was entered. This includes fractional shares. If the market price stays outside the 5% collar, the order will remain pending and be canceled at the end of the after-hours session.

Market orders placed during extended hours are queued for the opening of market hours (9:30 AM ET).

Limit orders

You can choose to make your limit order valid through all hours (market and extended) or only during market hours. A limit order will execute at its limit price or better.

Good-for-Day (GFD) limit orders placed with an instruction to execute during regular market hours will expire at the close of regular market hours that day. Good-for-Day (GFD) limit orders placed with an instruction to execute during extended hours will expire at the end of the last extended-hours session that day.

Good-til-Canceled (GTC) limit orders placed with an instruction to execute during regular market hours or extended hours remain active through the regular or extended-hours sessions, respectively, until it’s executed in the market, or until you cancel it. GTC Limit Orders expire after 90 calendar days.

Limit orders placed while all sessions are closed are queued for the start of the next market-hours session or the next extended-hours session, based on your selection. Keep in mind that a limit order will not execute if it can’t be filled at the limit price or better.

Stop orders

Stop orders won’t execute during extended-hours sessions. The stop limit and stop loss orders you place during extended hours will queue for the opening of regular market hours on the next trading day.

Trailing stop orders

Trailing stop orders won’t execute during extended hours. The trailing stop orders you place during extended hours will queue for the opening of regular market hours on the next trading day.

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Risk factors to consider

You should consider the following before engaging in extended-hours trading.

Risk of lower liquidity

Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity during extended hours as compared to regular market hours. As a result, your order may only be partially executed, or not at all.

Risk of higher volatility

Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility during extended hours than during regular market hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price when engaging in extended-hours trading than you would during regular market hours.

Risk of changing prices

The prices of securities traded during extended hours may not reflect the prices either at the end of regular market hours, or upon the opening of regular market hours on the next trading day. As a result, you may receive an inferior price when engaging in extended-hours trading than you would during regular market hours.

Risk of unlinked markets

Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended-hours trading system may not reflect the prices in other concurrently operating extended-hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended-hours trading system than you would in another.

Risk of news announcements

Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Similarly, important financial information is frequently announced outside of regular market hours. In extended-hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.

Risk of wider spreads

The spread refers to the difference between the price at which a security can be purchased and the price at which it can be sold. Lower liquidity and higher volatility in extended-hours trading may result in wider than normal spreads for a particular security.

You can learn more in Extended-Hours Trading Disclosure.

Learn more about how the stock market works in What is the Stock Market?

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Disclosures

Content is provided for informational purposes only, which does not constitute investment advice, and is not a recommendation for any security or trading strategy. All investments involve risk, including the possible loss of capital. Past performance does not guarantee future results.

Reference No. 2689020
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