Overview
Overnight hours trading hours allow investors to buy and sell select US securities outside the standard market and extended hours of major US exchanges. This creates an almost week-long trading window, allowing you to react to global events and news.
Overnight trading hours
Overnight trading hours run from Sunday to Thursday, 9:00 p.m. to 4:00 a.m. ET each day. Trading ends Friday at 4:00 a.m. ET.
How overnight hours trading works at Wealthsimple
Wealthsimple executes overnight trades through Blue Ocean Alternative Trading System (BOATS). To protect investors, BOATS uses a system that limits how much a stock's price can change during the overnight session. Specifically, BOATS has a 20% price band. This means that if you place an order and the price you set is more than 20% away from the stock's reference price, BOATS will reject your order.
The reference price is the stock's last sale price on a main exchange as of 7:30 p.m. ET. This price is used as a benchmark to determine if an overnight order falls within the 20% band.
In addition to this price band, BOATS also has rules about the size and value of orders. Wealthsimple, and any brokers we use to process your trades, might also have their own, stricter limits.
Benefits of overnight hours trading
- Adapt to your schedule: overnight hours trading offers flexibility to trade at convenient times based on your schedule.
- React to market news: overnight hours trading allows you to make decisions and respond to company news outside of regular trading hours.
- Global market influence: Events in foreign markets can impact U.S. stocks. You can trade in response to global market activities.
Restrictions and considerations for overnight hours trading
- Order type: Only limit orders are permitted for overnight trading. Market orders entered during overnight hours will be queued for the next regular market session.
- Ineligible trades: Overnight hours trading isn't available for Canadian-listed stocks or ETFs, U.S.-listed options, or over-the-counter (OTC) stocks.
- Fractional shares: Fractional shares aren't supported for overnight hours trading.
- Portfolio holdings: Your portfolio performance and holdings now reflect and fluctuate based on overnight hours prices.
Risks and considerations for overnight hours trading
There are heightened risks associated with overnight trading. For more information, please refer to the Extended and Overnight Hours Trading Disclosure.
Place an order during overnight hours
Follow the steps to place an order during overnight hours.
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