Overnight Trading in Canada

Overnight Trading for:

• 10,000+ US Stocks & ETFs;
• US Treasuries, European Government Bonds, UK Gilts;
• US Options & Futures

Interactive Brokers is one of the largest global brokers, offering various global financial products to trade. This platform offers overnight trading in partnership with liquidity provider BlueOcean Technologies. You can trade over 10,000 US stocks and ETFs, as well as options and futures, during the overnight trading sessions. You can also access US Treasuries, European Government Bonds, and UK Gilts for up to 22 hours daily.

Overnight trading allows market participants to trade securities when the main market session is over. Some markets, like forex and crypto exchanges, are open 24/7, so you can trade them overnight. Overnight trading focuses on other financial markets that tend to be closed outside of business hours. It also differs from pre-market and after-market trading because stock exchanges facilitate these trading sessions, while a third-party liquidity provider facilitates overnight trading.

North American Stock Exchanges Trading Hours

* Overnight sessions require third-party liquidity providers, which means some equities may not be available for trade.
Note: All times are in Eastern Time (ET).

Overnight trading exists for some US and European financial instruments. Although Canadian equities are not traded overnight, Canadians can still trade US stocks, ETFs, and other instruments.

Overnight trading is similar to main session trading, but market behavior and mechanics can differ. Overnight trading usually occurs with smaller liquidity providers and among smaller groups of investors. Some common differences between overnight and main trading sessions are:

• Incomplete Asset Selection: Since small liquidity providers facilitate overnight trading, some financial instruments may not be available.
• Low Trading Volume: Overnight sessions have significantly fewer traders than during the main session, which leads to a lower trading volume.
• Lack of Marker Order: Due to relatively low liquidity and low trading volume, overnight trading usually only allows limit orders that expire at the end of the session.

• Immediate Action - Access to overnight trading allows traders and investors to respond to news regardless of whether the markets are open.
• Flexibility for International Traders - Trading US securities may be difficult for people who live in a different time zone. Overnight trading allows foreign investors to participate in the market.
• Global Market Integration - With round-the-clock facilitated trading, US equities can be integrated into other markets for higher liquidity and better price discovery.

• Limited Securities - Not all securities are available for trade during overnight trading because the trades are usually facilitated by third-party liquidity providers.
• Low Liquidity - Since the trades are facilitated by a third party provider, and there are less traders, there is much lower liquidity.
• Execution Risks - Overnight trading usually only allows limit orders that expire at the end of the session. Due to lower liquidity and generally lower trading volume, there is a risk your position will not be executed or executed partially.
• Higher Volatility - Due to low liquidity and lower trading activity, overnight trading hours usually have a higher volatility.

Overnight trading allows investors to trade securities outside of regular market hours using a third-party liquidity provider. This means that the trades happen outside the stock exchange. Third-party liquidity providers and trading platforms connect investors who want to buy or sell securities. The investors can only place limit orders and wait for their execution. All orders are cancelled at the end of the trading session.

Canada has after-hours trading, but it is much more limited than the US stock market. After-hours trading is only available for electronic networks to facilitate adjustment rebalancing. Some brokers, such as CIBC Investor’s Edge, may offer after-hours trading, typically from 4:15 pm to 5:00 pm. During after-hours trading in Canada, you can only buy or sell stocks at the closing price.

The main trading hours for Canadian stock exchanges are 9:30 a.m. to 4:00 p.m., Monday through Friday, excluding statutory holidays. Some trading platforms allow after-market trading for Canadian securities from 4:15 p.m. to 5:00 p.m.

Both retail investors and institutional investors can participate in overnight trading. Hedge funds and large investment firms can engage in overnight trading. Individual investors are also allowed to trade overnight.