Are the rules for extended hours trading different?
The most important difference is that there is less liquidity after hours, meaning there are fewer other participants in the market for you to transact with. That means your execution price can vary more than during core market hours, so we suggest using limit orders if you want to get an exact price.
All market orders, with the exception of market sell orders placed during the day session, will remain pending until the end of the after-hours session. Market sell orders placed during the day session will expire at the end of the day session.
To protect you from increased volatility in extended hours trading, we automatically convert market orders into limit orders with a 5% collar. Please note that not all stocks support market orders in the extended hours trading sessions. Placing a market order while all trading sessions are closed will queue the order for the opening of the next day session (not pre-market).
All limit orders in a Robinhood Gold account are valid during both extended-hours and regular session. If the stock is available at your target limit price and lot size, the order will be executed at that price or better.
Due to low volume and wide spreads, stop orders will not be triggered during after-hours sessions. If you make a stop limit or stop loss order during an extended hours session, it will be queued for market open of the next trading day, and stop triggers will never be met during an extended hours session.
To indicate how long your market, limit, or stop order will remain active, you can set a time-in-force. The time-in-force options include Good-for-Day (GFD), and Good-’til-Canceled (GTC). A GFD order placed during the pre-market, day, or after-hours session will automatically cancel at the end of the after-hours session if unexecuted. Any GFD order placed while all sessions are closed are queued for the open of the next session. Any GTC order placed during the pre-market, day, or after-hours session remains active through all sessions until either executed or cancelled by you.
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