Disclaimers

This document provides important information about trading securities outside of regular market hours. It's an important supplement to our Best Execution Disclosure and is meant to help you understand the specific risks involved.

Questrade, Inc. (“Questrade”), a registered investment dealer and member of the Canadian Investment Regulatory Organization (“CIRO”), allows clients to trade certain U.S.-listed stocks and exchange-traded funds (ETFs) during extended and overnight sessions.

   
• Extended Hours: This includes both pre-market (Monday-Friday, 4:00 am to 9:30 am ET) and post-market (Monday–Friday, 4:00 pm to 8:00 pm ET) trading.
   
• Overnight Hours: This is a separate session that runs Sunday to Friday from 8:00 pm to 2:00 am ET.

Keep in mind that these hours may be adjusted on trading days that are shortened due to holidays.

Trading during these sessions can offer additional opportunities, but it also comes with increased risks. You should be aware of the following:

   
• Liquidity: The liquidity of a security refers to the number of orders in the market, and represents how easily you can buy or sell a security without substantially affecting its market price. Since there are fewer market participants participating in pre-market and after-hours trading, liquidity tends to be low, meaning it’s more likely that an order may only be partially executed or not executed at all.
   
• Volatility: Another result of lower liquidity, extended-hours trading tends to see more volatility, which means a more unstable security price that swings between highs and lows more frequently.
   
• Spreads: With lower liquidity and higher volatility, the difference between the available buy and sell prices (known as the spread) may be greater during pre-market and post-market hours.
   
• Availability: Not all stocks are available for pre-market and after-hours trading, and only limit orders can be placed in extended-hours trading.
   
• Competition: Many extended hours traders are professionals with large institutions, and may have access to more current information than individual investors.
   
• Market-hours traders: Certain institutional and major investors may choose to simply refrain from pre-market and after-market trading. Due to this, it's possible for a stock's price to fall sharply during extended hours trading only to rise when the markets open the following day or vice versa.
   
• Risk of Press Releases and News: Issuers tend to release news outside of regular market hours which could lead to higher fluctuations in the pricing and liquidity variables noted above. 

Additional Risks for Overnight Trading 

It is important to note that the risks outlined above are greater when trading during overnight hours.    

Questrade executes overnight trading orders on an agency basis through Blue Ocean Alternative Trading Systems (BOATS). It is important to know that BOATS does not have to publicly display prices. Orders placed through this system may not be price-protected and could be executed at prices that are less favorable than those available on other trading venues which operate outside continuous market hours (9:30am - 4pm). 

BOATS also employs a 20% price band during its trading session that can result in your order being rejected if it is priced more than 20% away from the last sale price on a centralized stock exchange as of 7:30 pm ET. However, to reduce the chance of your order being rejected, Questrade and/ or our executing broker(s) may implement a more conservative price band.

Overnight trade orders will remain open during overnight trading hours (8:00 pm to 2:00 am ET). Any unfilled orders will be automatically canceled at the close of the session and will not carry over to the next trading day.

Extended and Overnight Hours Trading through Questrade 

You should also be aware of the following considerations when submitting orders to trade in the extended and overnight hours sessions:

   
• Limited Platform Support: Our client services team has limited availability during extended hours and no availability during overnight trading. While we monitor for system errors, we may not be able to assist you with specific order issues in a timely manner during these sessions.
   
• Securities available: It is up to the sole discretion of Questrade as to which securities are available to trade during the extended and overnight hours sessions. Availability of these securities may change at any time without notice.
   
• Order Cancellation/Rejection: Our system is set up to automatically route most client orders to our executing brokers. However, any orders that meet or exceed Questrade's internal risk limits, or that are canceled by our executing broker(s), will be rejected or canceled.
   
• Order Routing: For details on how we route orders, please see our Best Execution Disclosure.
   
• Auctions: Orders entered during these sessions may participate in opening/closing auctions or crossing sessions. However, remember that overnight orders are canceled at 2:00 am ET and will not participate in any subsequent opening auctions.
   
• Fractional Share Trading: You cannot place orders for fractional shares during extended or overnight trading sessions.