Overnight Trading Disclosure

 Last updated: 3/26/2025

What is Overnight Trading?

Overnight Trading refers to the trading session from 8:00pm Eastern Time (“ET” or local New York City time) to 4:00am ET. The United States market is open between 9:30am ET and 4:00pm ET (“Core Trading Session”) Monday through Friday (excluding Exchange holidays). The Extended Hours Trading Sessions consist of two periods outside of the Core Trading Session, the Pre-Market Trading Session (4:00am ET to 9:30am ET) and the Post-Market Trading Session (4:00pm ET to 8:00pm ET). The rules for trading during Extended Hours and Overnight Trading Sessions may differ from the rules during the Core Trading Session. Extended Hours and Overnight Trading may not be suitable for all investors. Please see the Extended Hours Trading Disclosure for more information about Extended Hours Trading.

You should consider the following points before engaging in Overnight Trading. 

Overnight Trading Session

For an order to be eligible for the Overnight Trading Session, you must both enter the order during the Overnight Trading Session and specifically designate the order for the Overnight Trading Session. Orders may be designated for additional trading sessions.

Certain trading limitations may exist in the Overnight Trading Session, including the availability of symbols and order types, as described below. Orders entered during the Overnight Trading Session and designated for multiple trading sessions (including the Overnight Trading Session) that are not filled or are only partially filled during the Overnight Session will automatically roll over into the Pre-Market Session (and may, if not filled or only partially filled, roll over into the Core Trading Session and Post-Market Session, if so designated). In addition, orders filled or partially filled during the Overnight Trading Session are not final executed orders until the trades are validated and the corresponding purchase and sales transactions are matched and reported to the clearing firms involved in each side of the transactions, after 8:00am ET. Trading in the Overnight Trading Session may be supported by a limited number of venues. Potential risks of trading in the Overnight Trading Session are outlined below. 

As a general matter, the Overnight Trading Session will begin at 8:00pm ET when the next calendar day is a normal Exchange trading day. For example, Overnight Trading may begin on a Sunday at 8:00pm ET if the following Monday is a normal Exchange trading day or may begin at 8:00pm ET on January 1 if January 1 is the official Exchange New Year’s holiday and January 2 is a normal Exchange Trading Day. The Overnight Trading Session may not otherwise take place on official Exchange holidays and DriveWealth reserves the right to change or modify hours of operation for Overnight Trading at any time without prior notice. An Overnight Trading Session, or any security traded therein, may be temporarily or permanently suspended without prior notice at any time at DriveWealth’s discretion or by a venue that DriveWealth utilizes. If Overnight Trading is suspended in any such venue, DriveWealth will seek to route orders to another venue in the Overnight Trading Session.

The Overnight Trading Session hours may not be available for every customer. 

How Does it Work?

DriveWealth will route Overnight Trading orders to a trading venue to facilitate Overnight Trading in a manner seeking to obtain best execution of the orders. Orders entered during the Overnight Trading and designated for the Overnight, Pre-Market, Core, and Post-Market Trading Sessions will be available for execution during the entire 24-hour period from 8:00pm ET through 8:00pm ET the following Exchange trading day . 

Overnight Orders Placed During the Overnight Trading Session

All orders for the Overnight Trading Session are submitted to DriveWealth on a not-held basis. DriveWealth will attempt, on a best-efforts basis, to execute the order during the designated trading sessions.

The following orders will be rejected:

  • Any order designated for the Overnight Trading Session and entered before 8:00pm ET will be rejected.

  • If the trade symbol is halted or inactive, all orders will be rejected. In addition, during the Overnight Session, if the trade symbol is halted or becomes inactive, any trades in that trade symbol during the Overnight Session and before the halt or inactivity may be canceled.

  • If the trade symbol is Close-Only or Sell Only, all Buy orders will be rejected. 

Overnight Trading Sessions – Terms.

All orders designated for the Overnight Trading Session will be subject to the following Overnight Trading terms. 

  • Whole Shares Orders. Only Whole Share orders are accepted for the Overnight Trading Session.

  • Types of Orders: For more information on types of orders, please refer to DriveWealth’s Trading Disclosure. 

  • Limit Orders. Whole Shares only. 

    • Good-til-Executed Limit Orders. Good-til-Executed (“GTX limit orders placed with an instruction to execute during the Overnight Trading Session remain active through the Core Trading Session and the Extended Hours Sessions until it is executed in the market or canceled. 

  • Eligible Securities. Not all securities may be available for Overnight Trading. The availability of a particular security may vary based on, among other things, market factors or corporate actions with respect to that security in the particular Overnight Trading Session. DriveWealth does not represent or guarantee that Overnight Trading will be available in all securities. 

  • Time in Force. If you designate an order and it is accepted for Overnight Trading, then the overriding time-in-force instruction is for the Overnight Trading Session. This means that if your order is unfilled (or partially filled) at the end of the Overnight Trading Session, your unfilled order will be eligible to participate in the following Extended Hours and Core Trading Sessions but will be canceled before the next Overnight Trading Session. 

  • May Not Be Available for All Account Types. Overnight Trading may not be supported for all account types.

Important Considerations for Overnight Trading

Overnight Trading may not be suitable or appropriate for all investors and poses certain risks including, but not limited to: lower liquidity, price changes, news announcements, higher volatility, and wider spreads. DriveWealth does not guarantee that there will be a market for trades entered during and designated for the Overnight Trading Session; there may be limited trading activity compared to the trading activity during Core Trading Sessions. Moreover, as described above, orders filled or partially filled during the Overnight Trading Session are not final executed orders until the trades are validated and the corresponding purchase and sales transactions are matched and reported to the clearing firms involved in each side of the transactions, after 8:00am ET. This may make it more difficult to obtain order executions and may entail other risks such as those listed below:

  • Risk of Lower Liquidity: During Overnight Trading Session there may be less trading volume for certain stocks (and for certain stocks there may be no trading volume), making it more difficult to execute trades. In addition, there may be a number of orders ahead of yours that will be filled by incoming matching orders before your order can be filled. It is possible that your order will not be filled at all or only partially filled.

  • Risk of Higher Volatility & Wider Spreads: Stocks may experience greater price fluctuation and wider spreads during the Overnight Trading Sessions than during Core Trading Sessions. News stories announced during the Post-Market Session or Overnight Trading Session may have greater impact on stock prices, as discussed in greater detail below. Prices may not be calculated or widely disseminated during the Overnight Trading Session for certain securities products whose value is derived from an underlying index or calculated at other predetermined intervals. 

  • Risk of Changing Prices. The prices of securities traded in the Overnight Trading Session may not reflect the prices either at the end of the Core Trading Session or upon the market opening the next trading day. As a result, you may receive an inferior price when engaging in the Overnight Trading Session than you would during the Core Trading Session.

  • Not Reg-NMS Eligible. Orders in the Overnight Trading Session are submitted to DriveWealth on a not-held basis and DriveWealth endeavors on a best-efforts basis to obtain the best available price in the market for trades executed during Extended Hours Trading Sessions and the Overnight Trading Session. 

  • Risk of Unlinked Markets: During the Core Trading Session, quotes and last-sales reports are consolidated. Overnight Trading quotes and last-sales reports are not consolidated across all Electronic Markets (“EM”). Overnight Trading quotes and prices will represent the best prices available at that time only through EMs that may be participating in Overnight Trading. Note that the number of EMs during the Overnight Trading Session may be very limited. Quotes and last-sale prices may vary widely from one EM to another.

  • Risk of News Announcements. Issuers often make news announcements that may affect the price of their securities after the Core Trading Session. Similarly, important financial information is frequently announced outside of the Core Trading Session. These announcements may occur during trading in the Overnight Trading Session, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.

  • Competition: Many Post-Market-hours traders are professionals who are associated with large institutions and may have access to more information than individual investors.

  • Connectivity and Technology Issues: Unforeseen connectivity or technology issues may cause the interruption of normal order flow and fills. Connectivity issues between a venue and DriveWealth may trigger  a “Cancel on Disconnect” where the normal flow of orders and fills is potentially interrupted. During these types of events DriveWealth will attempt on a best-efforts basis to reconnect or connect to another EM and restart the normal flow but orders may be canceled or delayed during these events. 

Additional information about the risks associated with Extended Hours and Overnight Trading is available from the SEC at: Post Market Trading: Understanding the Risks.