 Extended Hours Trading Sessions available Monday through Friday
4:30 pm to 7:00 pm Eastern Time (except Exchange Holidays). While this new service affords individual investors the
opportunity to place trades after major U.S. markets are closed,
when earnings reports, news stories, and other financial data are
normally released, it is important to highlight some key points for
trading during extended hours. Please note that your participation in the Extended
Hours Trading Session will signify your acknowledgement and
understanding of the unique risks involved when trading during an
extended hours session. Key Points (click on each heading for more
information): | The REDIBook ECN | Acceptable Orders | Unique Risks |
|---|
- All orders entered for Extended
Hours Trading will be processed through the REDIBook Electronic
Communications Network (ECN).
| TD Waterhouse
only accepts Limit Orders on NASDAQ and eligible NYSE/Canadian
inter-listed securities for Extended Hours Trading.- All orders entered through the
Extended Hours Trading Center will be good for that particular
Extended Hours Trading session only.
| - Customers choosing to participate
in Extended Hours Trading sessions are subject to unique risks,
including:
- Wider Spreads
- Lack of Liquidity
- Higher Volatility
|
|---|
The REDIBook ECNAll orders entered for extended hours
trading will be processed through the REDIBook ECN. REDIBook, like
other ECNs, is an electronic order matching system which
automatically pairs up buy and sell limit orders. As you enter an
order through the TD Waterhouse
Extended Hours Trading Center, your order will be immediately
reflected on the REDIBook ECN.
Acceptable OrdersFor Extended Hours Trading TD Waterhouse
currently accepts only:
- Limit Orders: All orders
entered into and posted on REDIBook must be limit orders. That
means that you must enter the price at which you would like your
order to be executed before your order can be accepted. By entering
the price, this means that you will never buy for more than the
price you entered, or sell for less, although your order could be
executed at a better price. Because you have indicated the best
price at which your order must be executed, if the market moves
away from your price, your order may not be executed.
- Good For That Particular Extended
Hours Trading Session: Orders entered for Extended Hours
Trading which are not executed will expire at the end of that
session (7:00pm).
Orders entered through the Extended Hours Trading Center cannot
be modified to be eligible for trading during normal market hours
or another extended hours session. Likewise, orders entered through
the TD Waterhouse
Trading section (where you place orders eligible for trading during
normal market hours) will not be eligible for trading during the
Extended Hours sessions. To avoid confusion, the order status
presented in the Extended Hours Trading Center will only reflect
orders entered for Extended Hours Trading.
Unique Risks Associated with Extended Hours TradingCustomers choosing to participate in
Extended Hours Trading Sessions are subject to unique risks. - Risk of Wider Spreads:
Securities traded in the Extended Hours Trading Sessions often
reflect wider spreads (the difference between the bid and
ask);
- Liquidity Risk; No
"National Best Bid or Offer" (NBBO):
Orders will be displayed only on REDIBook, and will be executed
(matched) only against other orders posted on REDIBook. REDIBook
orders will not be displayed on other ECNs, and therefore will not
eligible for execution on other ECNs. Orders displayed on other
ECNs will not be displayed on REDIBook and therefore will not
eligible for execution against orders displayed on REDIBook. This
means that there is no guarantee that there will be orders at any
given price;
- Risk of Higher
Volatility: There may be more volatility in the Extended
Hours Trading Sessions than in the daytime securities markets. As a
result, the prices of securities traded in the Extended Hours
Trading Sessions may not reflect the price of the securities on
their primary exchange, either at the end of the day-time session,
or upon the opening of the exchange
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