More Trading Hours for tastytrade Customers
By:James Melton
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.
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.
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.”
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:
For additional investor educational information, see the SEC’s website for individual investors, Investor.gov.
James Melton is managing editor of Luckbox magazine.
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