uploaded image
Image courtesy of Getty Images

More Trading Hours for tastytrade Customers

By:James Melton

The update gives users an extra 30 minutes before the markets open and three hours of extra trading time after markets close

If opportunity—in the form of a stock-trading idea–knocks before the market opens or after it closes, tastytrade customers have a new way to answer the door.

The brokerage will make pre-market trading available from 7 a.m. until 8:30 a.m. CDT on weekdays. After-hours trading will be available from 3 p.m. until 7 p.m. CDT weekday evenings. Compared to tastytrade’s previous extended hours, this update gives users an extra 30 minutes before the markets open and three hours of extra trading time after markets close.

Extended hours trading is available only for trading in shares such as stocks, exchange-traded funds and American depositary receipts. An American depositary receipt is a certificate issued by a U.S. bank that represents shares in foreign stock and priced in U.S. dollars. Extended hours trading does not apply to equity options trading.

Pros and cons of extended hours

Why is this important? Pre-market and after-hours trading give investors more time to react to events, such as earnings announcements and major world news. Extended trading hours also can be convenient for traders who may live in a non-U.S. time zone.

Traders who are new to buying and selling stocks outside normal market hours may want to keep several risks in mind before diving in. Smaller trading volume during extended-hours trading can lead to low liquidity and higher-than-normal price volatility. More about that is below.

Customers asked for more hours

The increase in hours for stock trading resulted from customer requests, says JJ Kinahan, CEO of IG North America, which includes tastytrade.

"You have asked for it, so we of course deliver it,” Kinahan said. “Customers should keep an eye out for more features they have been asking for coming shortly.”

The SEC and extended trading hours

In a bulletin issued in June 2022, the Securities and Exchange Commission notes that “extended-hours trading may present investment opportunities” but cautions investors to consider the following risks:

  • Lack of liquidity because of “less trading interest and therefore less price competition for most stocks.”
  • Price volatility for stocks with limited trading activity.
  • Uncertain prices that may not reflect the prices of those stocks during regular hours.
  • Trading systems that are not linked, resulting in price differences across systems.
  • The effect of news announcements made outside regular trading hours.
  • Wider spreads between the bid and ask prices.
  • The possibility that order-handling rules will differ from those during regular trading hours.
  • Some brokerages may accept only limited orders during extended-hours trading.
  • Some brokerages may set a time limit on orders.
  • Competition from “professional traders who, by nature of their profession, generally have access to more information than individual investors.”

For additional investor educational information, see the SEC’s website for individual investors, Investor.gov.

James Melton is managing editor of Luckbox magazine.

For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.

Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

Related Posts

tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.  Options, futures, and futures options are not suitable for all investors.  Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.

tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.

tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.

tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.

© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved.  Applicable portions of the Terms of Use on tastylive.com apply.  Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.