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Schwab Expands 24/5 Trading: A New Opportunity for Clients

Cyrus ColeWednesday, Feb 12, 2025 11:23 pm ET
5min read


Charles Schwab, a leading investment and trading firm, has announced the broad availability of expanded 24/5 trading for all clients. This move follows a successful pilot program and allows clients to trade an expanded list of securities, including S&P 500 and Nasdaq-100 stocks, as well as hundreds of additional exchange-traded funds (ETFs), 24 hours a day, five days a week. This new opportunity comes with both advantages and challenges, which clients should consider before engaging in extended-hours trading.



Advantages of Expanded 24/5 Trading

1. Access to US markets during business hours in Asia and Europe: Schwab clients in Asia and Europe can now invest in US companies and trade US markets during their business hours, allowing them to react to news events and market movements in real-time.
2. Trading around news events and earnings announcements: With 24/5 trading, clients can respond to breaking news and earnings announcements as they happen, even if they occur outside of regular US market hours. This allows for more timely decision-making and potentially better trading opportunities.
3. Putting education into practice: Schwab has observed that people tend to read trader education content in the evening. With 24/5 trading, clients can now put what they've learned into practice in their accounts immediately, rather than waiting for the next trading day.

Challenges and Risks of Extended-Hours Trading

1. Lower liquidity: During extended hours, there is less activity and fewer participants, which can lead to lower liquidity. This can make it more difficult to buy or sell securities at desired prices.
2. Higher volatility: With fewer participants and less liquidity, prices can be more volatile, making it riskier to trade.
3. Price changes between sessions: Prices can change significantly between the regular market hours and extended hours, which can impact the value of trades.
4. Unlinked markets: Extended-hours trading can involve unlinked markets, which means that prices in one market may not reflect prices in another. This can lead to discrepancies and potential losses.
5. News announcements: News events that happen outside of regular market hours can impact trading, but there may be less information available to make informed decisions.

volume ratio(6524)
volume ratio rank from largest to smallest(6524)
during overnight session's atr(6130)
volume ratio rank from largest to smallest ;during overnight session's atr(6130)
Volume Ratio2025.02.12
Volume Ratio ranking2025.02.12
ATR2025.02.12
1.55K1/61300.37
1.25K2/61300.05
1.07K3/61300.13
582.184/61300.05
533.215/61300.08
410.016/61300.02
300.277/61300.02
94.928/61300.05
86.179/61300.14
80.2410/61300.06
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Managing Risks and Trading Responsibly

To mitigate these risks, investors can:

1. Have a Trading Plan: Having a well-defined trading plan can help investors stick to their strategy and avoid overtrading or making impulsive decisions.
2. Stay Informed: Keep up-to-date with news and events that could impact the markets, even if they happen outside of regular market hours.
3. Be Cautious: Be aware of the unique dynamics and potential risks of extended-hours trading and adjust your strategy accordingly.
4. Consider Using Stop Orders: Stop orders can help limit potential losses by automatically selling a security if it reaches a certain price.
5. Be Patient: Don't rush into trades just because you can. Take the time to analyze the situation and make informed decisions.

In conclusion, the availability of 24/5 trading on Schwab's thinkorswim platform has opened up new opportunities for clients in different time zones, allowing them to access US markets during their business hours, trade around news events, and put their education into practice. However, it is essential for clients to be aware of the potential risks and manage their trading plans accordingly to avoid overtrading or taking on unnecessary risk. By doing so, clients can take full advantage of this new opportunity while maintaining a responsible and disciplined approach to investing.
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elpapadoctor
02/13
Holding $AAPL, no rush, patience is key
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Bothurin
02/13
Liquidity low in extended hours, trade carefully folks
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TheMushroomGuy
02/13
@Bothurin True, liquidity can be low. Be cautious.
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No-Sandwich-5467
02/13
Schwab's move is like a cheat code for those in Asia/Europe. US markets at their fingertips.
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Conscious_Shine_5100
02/13
Liquidity low in extended hours? No prob. Just set those stop orders and chill.
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BlackBlood4567
02/13
24/5 trading = more flexibility, but volatility can bite. Be prepared, not scared. 🚀
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BenGrahamButler
02/13
@BlackBlood4567 Volatility's a risk, but it can also shake loose deals.
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Big-Decision-1458
02/13
ETFs galore on Schwab! 🤔 Just watch those unlinked markets, might trap the unwary.
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auradragon1
02/13
24/5 trading feels like having a cheat code for market vibes. Schwab's move is a game changer for us global players.
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Current_Attention_92
02/13
Market volatility during off-hours? It's like the Wild West out there. Watch your step.
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WatchDog2001
02/13
Extended hours = volatility, brace for wild rides.
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dypeverdier
02/13
Schwab's move is bullish for global traders.
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owter12
02/13
24/5 trading = more action, more excitement, more 💰
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Plane-Salamander2580
02/13
Trading plan + patience = recipe for success. Don't let FOMO take control.
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nicpro85
02/13
@Plane-Salamander2580 What’s your avg. holding duration? Curious if you’re a swing trader or HODLer.
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Historical_Hearing76
02/13
@Plane-Salamander2580 I hear ya. FOMO hits hard. Schwab's 24/5 makes it tough not to check the market constantly.
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rvnmsn
02/13
I'm all in for $AAPL, but extended hours? I'm cautious. Not every day is a green day.
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Lunaerus
02/13
Thinkorswim platform just got a major upgrade.
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CarterUdy02
02/13
Schwab's platform is lit for traders. 24/5 action? That's what I call a trading high.
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Sensitive_Chapter226
02/13
@CarterUdy02 Yessir
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