Extended Hours Trading
Schwab offers investors the ability to trade stocks outside regular market hours of the major U.S. stock exchanges during our Extended Hours Trading sessions.
Extended Hours Trading may not be for everyone - it's important for you to understand the differences and the associated risks before deciding whether to participate in Schwab's Extended Hours Trading sessions.
Extended hours trading is made possible by computerized order matching systems known as Electronic Markets (either Electronic Communications Networks or Electronic Stock Exchanges). These Electronic Markets may have relationships with other Electronic Markets that participate in an extended hours trading network in order to provide access to orders or prices available on these other participating Electronic Markets.
- Separate Trading Session — Schwab's Extended Hours Trading offering has two components, the Pre-Market Trading session and After Hours Trading session. These are completely independent from the standard trading session. Extended hours orders must be placed on the special Extended Hours Trading screens at the Schwab trading site, or by calling +852-2101-0511 and asking for an Extended Hours Trading representative.
- Commissions and Trade Settlement — Commissions for extended hours trading are based on Schwab's standard fee and commission schedule. Please note that the commissions for trades executed in multiple sessions (i.e. Pre-Market, standard or After Hours) are not aggregated. Extended hours trades will normally settle three business days from the date the order is executed, just like orders placed during standard market hours.
Standard Market vs. Extended Hours Sessions
|Standard Market||Pre-Market and After Hours Trading|
|Orders can be placed at any time and will only be executed from 9:30 a.m. to 4:00 p.m. ET||
Pre-market: Orders can be placed between 8:05 p.m. (previous trading day) and 9:25 a.m. ET and will be eligible for execution between 8:00 a.m. and 9:25 a.m. ET
After-hours: Orders can be placed between 4:05 p.m. and 8:00 p.m. ET and will be eligible for execution between 4:15 p.m. and 8:00 p.m. ET
|Trading primarily occurs on exchanges (NYSE Euronext and other regional markets) and on NASDAQ through a variety of venues including market makers and ECNs||Trading occurs through a leading Electronic Market|
|Many order types and restrictions are accepted. Including: market, limit, stop-limit, all-or-none, etc.||Only limit orders for the particular Extended Hours session are accepted|
|All order sizes are accepted||25,000 shares is the maximum quantity on a single order|
|Many security types are available, including: stocks, options, bonds, mutual funds, etc.||Most listed and NASDAQ securities are available in the extended hours session|
|Different time limits are available, including: Day, GTC, IOC and FOK||All orders are only good for the particular session in which they are placed. There is no carryover into any following session|
|In general higher trading activity means more liquidity and a greater likelihood of order execution||Lower trading activity may result in lower likelihood of order execution, plus wider spreads and greater price fluctuation|
|The quotes you receive are consolidated and represent the best available prices across all trading venues. Market makers and specialists work to ensure customers get the best buy or sell prices displayed on NASDAQ and the exchanges||Quotes are not consolidated and represent the current prices available through the Electronic Market. As a participant in the Extended Hours Trading Network, the Electronic Market may also offer access to prices available on other participating Electronic Markets, but not necessarily all venues open for EHT|
What is an Electronic Market?
Electronic Stock Exchange is a computerized trading network or market used to display and execute limit orders. Professional traders, such as those who trade for big financial institutions, have been using Electronic Markets for many years.
How Does it Work?
An Electronic Market is simply a matching service set up to match buy and sell orders. For example, if there are no sell orders for a particular stock displayed on an Electronic Markets, an investor who places an order to buy that stock has to wait for a matching sell order to come in before an order execution can take place.
What’s the Result?
Buyers and sellers trading through an Electronic Markets may experience significant delays before their orders are filled, and some orders may not be executed at all.