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All you need to know about Extended Trading Hours

8/19/22, 4:40 AM

What are Extended Trading Hours?

Introduction

CBOE (The Chicago Board Options Exchange) Global Markets is a leading market maker and exchange operator, offering the global investor community a wide range of products. One of these products is titled "Extended Trading Hours". Extended trading hours are when investors can trade stocks after the exchange closes. This allows investors to buy or sell stocks late in the day when there may be less volume than usual on U.S markets which results in lower volatility if they choose to do so.

Extended trading hours are when investors can trade stocks after the exchange closes.

Extended trading hours are when investors can trade stocks after the exchange closes. There is no official closing time for stocks, but in most cases, exchanges close at 4 p.m. on weekdays and 2 p.m. on weekends. This means that if you want to buy or sell shares of a company during your regular workday, you have to do it before these times.

In some cases, however—especially during periods of high volatility—exchanges may extend their trading hours beyond those times to accommodate increased demand from investors who want access to the markets at any hour of the day or night.

Here's what you need to know about extended trading hours:

Pre-market trading and after-hours trading is available for CBOE listed stocks only,

For CBOE listed stocks (including ETFs and options on futures), pre-market trading and after-hours trading is available.

For CME listed stocks, pre-market trading may be available but only after starting time of the first market session of that day.

Pre-market sessions are at 5:00 a.m. CT and end at 9:30 a.m.; post-market sessions begin at 3:15 p.m., last until 4:05 p.m., then reopens at 4:15 p.m., closes again at 5:15 p.m.

The extended trading hours for the ES options on futures contracts occur from 8:00 a.m. to 9:15 a.m., and 4:00 p.m. to 8:00 p.m. (all times are Chicago time).

After-hours trading is also available on an additional list of ETFs and on a small group of individual stocks that don't trade on the CBOE BZX Exchange but do trade on other exchanges

There are a number of ETFs and individual stocks that trade on other exchanges but are not available for after-hours trading. In order to be eligible for after-hours trading, an asset must meet the following criteria:

  • Be listed on the CBOE BZX Exchange

  • Trade during regular market hours on at least one U.S.-based exchange (including NYSE Arca)

  • Have a minimum average daily volume of 100,000 shares per day over the last six months

During these extended trading hours, investors can access quotes and executions through their order processors or market data providers, not through CBOE Global Markets.

During these extended trading hours, investors can access quotes and executions through their order processors or market data providers, not through CBOE Global Markets.

Quote and execution data are available from your broker during extended hours. Quote and execution data are not available from CBOE Global Markets during extended hours.

Not all brokers allow investors to trade during extended trading hours, so be sure to check with your broker before placing such trades.

  • Not all brokers allow investors to trade during extended trading hours, so be sure to check with your broker before placing such trades.

  • Some brokers offer extended trading hours and others don't. If you're interested in trading during these times, it's worth it for you and your broker to discuss the subject so that you can avoid any confusion later on.

Since not all brokers offer this functionality, you want to make sure your broker does before making any decisions or placing any trades..

Before you place any trades, make sure your broker is offering extended trading hours. This can be done by visiting your broker's website or calling them directly.

Once you’ve confirmed that your broker is offering extended trading hours, here are some tips on how to best take advantage of this opportunity:

If a stock or ETF is listed on the CBOE and is a component of an index or ETF that trades on one of our futures exchanges, you can trade it during extended hours.

If a stock or ETF is listed on the CBOE, you can trade it during extended trading hours.

If a stock or ETF is listed on one of our futures exchanges, you can trade it during extended trading hours.

If a stock or ETF is not listed on any exchange but is a component of an index that trades on one of our futures exchanges, you may be able to trade it during extended trading hours if:

  • The equity options market has enough liquidity throughout the regular session to support an orderly market for those options; and

  • The underlying security's price sufficiently influences its related option’s price throughout the regular session (i.e., there are sufficient numbers of long option counterparties willing to create new positions as needed).

Conclusion

It’s important to understand how these extended trading hours work, because they can be useful in certain situations. If you want to trade during the pre-market or after-hours, it’s important to check with your broker first to make sure they offer this functionality and that it works with your trading platform.

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