Extended Hours Trading Risks Disclosure
You should consider the following points before engaging in extended hours trading. “Extended hours trading” means trading outside of “regular trading hours.” “Regular trading hours” generally means the time between 9:30 a.m. and 4:00 p.m. Eastern Standard Time.
Risk of Lower Liquidity: Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular market hours. As a result, your order may only be partially executed, or not at all.
Risk of Higher Volatility: Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular market hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price in extended hours trading than you would during regular markets hours.
Risk of Changing Prices: The prices of securities traded in extended hours trading may not reflect the prices either at the end of regular market hours, or upon the opening of the next morning. As a result, you may receive an inferior price in extended hours trading versus what you would receive during regular market hours.
Risk of Unlinked Markets: Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hour’s system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system versus what you would receive in another extended hours trading system.
Risk of News Announcements: Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Similarly, important financial information is frequently announced outside of regular market hours. These announcements may occur during extended hours trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.
Risk of Wider Spreads: The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended hours trading may result in wider than normal spreads for a particular security.
Please also be aware that, although Apex Pro’s staff operates outside of Regular trading hours, it’s Operations staff may not have coverage within any or all of the operating times for Extended hours trading for the market venues to which it provides access. Consequently, Apex Pro does not guarantee coverage within any or all of the operating times for Extended hours trading. Therefore, for example, Apex Pro’s staff may not be available to submit applications to the market venues regarding any errors on your behalf during any or all hours of Extended hours trading. As a result, should you conduct any transactions within the Extended trading hours, Apex Pro may not assist and will not be held responsible for not assisting in any such transactions, including but not limited to order cancellations, liquidating orders, error submissions (i.e. erroneous price procedures with market venues to correct price entries for your orders which are required to be submitted within 30 minutes of the order), GTN.
If you have any questions about this policy, please write, call, or email us.
4509 Creedmoor Road, Suite 201
Raleigh, NC 27612 United States
Call us: +1 332 230 1184