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Extended Hours trading can give Fidelity's customers greater flexibility in managing their trading activity, and allow customers to react to market news during extended trading hours.
Due to the nature of the extended hours trading market, trading through an ECN may pose certain risks which are greater than those present during standard market hours. These risks include lack of liquidity, greater price volatility and price spreads, limited access to other markets and market information, price variance from standard market hours, the time and price prioritization of orders, and communication delays. These risks may prevent your order from being executed, in whole or in part, or from receiving as favorable a price as you might receive during standard market hours.
In order to place an order during the premarket or after hours sessions you must have a Fidelity Brokerage® account and agree to the ECN User Agreement. Also, before placing your first trade in the Extended Hours Session, you must speak to a representative to discuss the risks associated with this market. Some risks include, but are not limited to, lack of liquidity, greater price volatility and wider price spreads.
An ECN is an electronic order matching system in which investors and other market participants may participate. You can place orders through the ECN during the extended hours trading sessions. The ECN in which Fidelity participates is NYSE Archipelago (Arca).
During the extended hours sessions, you can trade all Nasdaq (National Market and SmallCap) and Listed securities.
Yes. As with regular session trades, you must have a Margin Agreement on file with Fidelity to trade on margin or to place a sell short order. If you do not have a Margin Agreement, you must use cash. To establish a Margin Agreement on an account, select Update Accounts/Features under the Accounts & Trade tab, and click Margin and Options under Account Features.
You can a buy, buy to cover, sell or short sale during the premarket and after hours sessions. Your orders must be limit orders. Time-in-force limitations must be either day, or immediate or cancel. Day orders are good until the premarket or after hours session ends. You can’t place any conditions (such as All or None or Do Not Reduce) on an extended hours trade. You will only see the Buy to Cover and Sell Short actions if you are eligible to place these types of orders. Short sales are eligible ONLY from 8:00 am ET – 9:28am ET during the pre market and from 4:00 pm ET – 8:00pm ET during the after hours session.
A premarket or after hours quote obtained from Fidelity.com is the best real-time quote for a stock eligible for trading during extended hours. Extended hours quotes reflect the best prices (top of book) available in the Arca order book.
An extended hours quote includes the Last Trade and Tick in the extended hours session from the previous standard session closing price. Since this change can be substantial, we recommend that you review this information as well as the Bid and Ask price along with Size before determining your limit price.
Expanded quote information available only during Extended Hours trading sessions. Order Book quotes include the current ten best Bid and ten best Ask ECN Extended Hours orders for a specified security, available for matching from one or more ECN’s. For use in Fidelity’s Extended Hours Trading session, Order Book quotes only reflect Bid and Ask orders from Arca.In addition to the best current Bid and Ask, Order Book quotes also supply the following information:
There is no minimum order size, and the maximum order is 25,000 shares on either side (bid to buy/offers to sell). The minimum quantity for Immediate or Cancel orders is 100 shares.
Orders in the premarket session can only be entered and executed beginning at 7:00 a.m. ET. The premarket session begins at 7:00 am ET and ends at 9:28 am ET. Short sale orders are ONLY available from 8:00 am ET – 9:28am ET.
Orders in the after hours session can be entered and executed beginning at 4:00 p.m. The after hours session begins at 4:00 pm ET and ends at 8:00 pm ET.
Trade executions are done by matching orders within the Arca order book with other available orders at the price you specify. Orders are ranked within the order book first by price (better priced orders come first) and second by time (earlier orders at the same price level come first). Partial executions can occur. All orders placed during the extended hours trading session expire at the end of that session if unfilled, in whole or in part. Partial executions can occur. All orders placed during either the Premarket or After Hours trading session expire at the end of that session if unfilled, in whole or in part.
All unfilled orders placed during the premarket and after hours trading sessions expire at the end of that particular session. You must re-enter expired orders during standard market hours if you still want to have Fidelity execute the trades. Similarly, orders entered during standard market hours will not automatically roll over into the extended hours trading sessions.
You may attempt to change or cancel your order any time before it is executed. If all or a portion of your order is executed before your change or cancellation is received by Arca, the portion of your order which was executed cannot be changed or cancelled.
If you change your order, your change is treated as a cancellation and replacement, which may cause it to lose its place in the order book which could result in a missed execution.
Fidelity may submit orders to another eligible and available ECN to maintain order flow. If another ECN is unavailable then Fidelity reserves the right to cancel any existing order on the order book or new orders entered for that extended hours session.
If a stock that normally trades on the ECN closes on a trading halt in its primary market, or trading is later halted by its primary exchange or a regulatory authority, trading of that stock will also be suspended on the ECN. The rules of Nasdaq and the stock exchange governing stock halts apply to the extended hours trading sessions, as they do to other sessions.
Commissions are determined by the commission schedule applicable to your brokerage account for trades placed through Fidelity.com. See the Brokerage Commission and Fee Schedules for complete details.
For settlement and clearing purposes, trades executed during the extended hours sessions are processed as if they had been executed during standard market hours. For example, the trade date would be August 26, 2010, for any trade executed during an extended hours session on August 26, 2010. The standard three-day settlement process applies to all extended hours trades.