As more investors turned to the stock market to take advantage of fluctuations amid the past year's economic volatility, Robinhood, the leading U.S. discount broker, is joining the trend of overnight stock trading. Starting next week, Robinhood will launch 24/5 trading for some stocks and exchange-traded funds, becoming the first major U.S. retail broker to offer around-the-clock trading for individual-name stocks. This feature allows traders to continue placing orders outside of regular trading hours, giving them more options for market access.

In the United States, regular trading hours for stocks typically takes place between 9:30am and 4:00pm Eastern Time (1330-2000 GMT) during the trading sessions of major exchanges, such as Intercontinental Exchange Inc 's (ICE.N) New York Stock Exchange and the Nasdaq (NDAQ.O). Besides, many major U.S. brokerages provide extended hours trading, where premarket trading starts at 4am and after-hours trading is available between the market close and 8:00pm.

Robinhood's 24/5 stock trading will see 43 ETFs and single-name stocks available for trading between 8pm Sunday until 8pm Friday, and more securities should be added over time. Furthermore, Charles Schwab Corp (SCHW.N) and Interactive Brokers Group Inc (IBKR.O) also offer near-continuous trading in ETFs and some single-name stocks.

Nevertheless, traders have to understand the risks of overnight trading, such as less available liquidity, so trades might not get completed; wider spreads; and prices that might vary from the regular trading session. Limit orders, rather than market orders, also have to be used when placing orders in retail brokerages out of normal trading hours, as these must be executed at a specific price or better.

Overall, overnight stock trading such as that provided by Robinhood offers investors more access to the stock markets. While there are risks to be aware of, this innovative new feature has the potential to benefit those trading frequently who are looking to take advantage of diverse opportunities in the market.



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