What Is an Extended Order?
An Extended Order is an order placed to buy or sell a stock during extended trading hours, which occur outside the regular trading session of US stock exchanges. Extended trading includes pre-market trading (before the market opens) and after-hours trading (after the market closes).
Unlike standard market hours, extended sessions generally have lower trading activity and fewer participating investors. As a result, stock prices may move more sharply due to company earnings announcements, economic data releases, or major market news published outside regular trading hours.
When you place an Extended Order on Raseed, your order is eligible to be executed during these extended trading sessions if there is sufficient liquidity and your specified order conditions are met. However, execution is not guaranteed, as trading volumes during extended hours are typically lower than during the regular market session.
Before using Extended Orders, investors should understand several important considerations:
- •Lower liquidity may make it more difficult to execute an order.
- •Bid-ask spreads are often wider, which can result in larger price differences.
- •Stock prices can be more volatile outside normal market hours.
- •Some securities may not trade actively during extended sessions.
Extended Orders are commonly used by investors who want to react quickly to overnight news, earnings reports, or significant global market events without waiting for the next regular trading session.
If you're new to placing stock orders, you may also find these guides helpful:
Extended trading can provide additional flexibility, but it's generally most suitable for investors who understand the potential risks associated with lower liquidity and price volatility.