Extended Hours Trading - Questions & Answers
Extended hours trading takes place outside of the normal market hours of 8:30 a.m. to 3 p.m. Central time. During normal market hours, brokerages forward orders to "middlemen firms" known as market-makers or broker-dealers on the NASDAQ Stock Market and specialists on the New York Stock Exchange (NYSE).
Extended hours trading takes place through electronic communications networks (ECNS). These systems automatically match buy and sell orders. An ECN is not a physical "bricks-and-mortar" exchange; it's all done by computers. If you want to buy a security at a certain price and someone else wants to sell that same security at that price after hours, the ECN matches the two orders automatically and completes the trade.
We offer extended hours trading from 7 a.m. to 8:15 a.m. Central time, and from 3:15 p.m. to 5:30 p.m. Central time each business day. Hours will differ when the exchanges open or close early. You can only place extended hours trade orders while the extended hours trading window is open.
Extended hours trading is another way we can provide you with more efficiency and convenience. Large institutional investors, pension fund money managers, and mutual fund managers have long had access to extended hours trading. We are leveling the playing field by giving our customers access to the same extended hours opportunities.
No. The commissions are the same as those for trades executed during "normal" market hours.
Because there is less liquidity in the extended hours market, there may not be an order that matches your order at the price you specify and your limit order may not be filled. You can increase your chances by choosing a price that is close to the most recent extended hours quote.
Yes. All American Century Investments® investors who have accepted the extended hours trading agreement may participate by placing their trades online or by contacting a Brokerage Investment Specialist at 1-888-345-2071.
No. Extended hours trades are only available by placing your trade online or by contacting one of our Brokerage Investment Specialists at 1-888-345-2071.
You can place Limit orders for both listed (NYSE) and NASDAQ equities. There are restrictions, however, in the types of orders you can enter.
- You can enter Buy or Sell orders. You cannot enter Sell Short orders.
- Orders can be in any share amounts between 1 and 99,999.
- You can only enter limit orders. You cannot enter Market, Stop or Stop Limit orders.
- The term is "day order" only. This means that all unexecuted extended hours trades will automatically expire at 5:30 p.m. Central time.
You may change or cancel your order before the end of that day's extended hours trading period. Click on Order Status to see if your order has executed.
Note: Limit orders that differ significantly from the best bid and ask may be canceled or rejected.
All orders you place during the extended hours trading window are immediately routed to the Electronic Communication Network (ECN). Once the ECN finds a match for your order (an order to sell at the price you want to buy, or to buy at the price you want to sell), your order will automatically be executed.
However, if the ECN does not find a match for your order by the end of the extended hours trading period, your order will expire. All extended hours orders are day orders and, if unfilled, automatically expire at the end of each extended hours trading period. They don't carry over to the next "regular" trading day or the next extended hours trading period.
No. You can only place extended hours orders for stocks traded on the NYSE or NASDAQ market.
No. You can only trade certain stocks in the extended hours market.
No. Think of the extended hours market as a totally separate, limited market. You place your extended hours orders using the trading option that's available only during the extended hours trading periods. You may enter "regular" orders anytime using the trading option that's always available.
- You place a good-till-cancelled (GTC) Limit order to buy a stock at $50 at 10 a.m. The stock never reaches $50 before the "normal" market closes at 3 p.m. You notice, however, that in the 3:15 p.m. to 5:30 p.m. extended hours market, it does reach $50. Does your $50 limit order execute?
No. Because you didn't place the order as an extended hours order between 3:15 p.m. to 5:30 p.m. Your $50 GTC limit order does carry over to the next day in the "normal" market.
- You place an extended hours order between 3:15 p.m. and 5:30 p.m. Central Time for a Limit order to buy a stock at $50. No one places a corresponding order to sell the stock at $50 in the extended hours trading market that day. Does your order carry over to the next market day or to the next extended hours market session?
No. Extended hours orders are good-for-day orders only and, if unfilled, automatically expire at the end of the extended hours trading period.