Beginning May 16, Robinhood (NASDAQ: HOOD) will start rolling out 24-hour trading of “43 of the most traded ETFs and individual stocks” five days a week.
The brokerage announced on Wednesday that the feature will allow trading between 8 p.m. ET Sunday and 8 p.m. ET Friday for the selected securities, including Amazon.com, Apple, and Tesla. The company plans to add more stocks and ETFs available for overnight trading in the future.
“It’s the next step in evolving the market to how it should work, which is 24/7, and more like a piece of software rather than a brick-and-mortar institution that’s tied to U.S. East Coast working hours,” Chief Executive Vlad Tenev said in an interview.
As a way to safeguard against triggering price swings outside of the normal 9:30 a.m. to 4 p.m. ET Monday to Friday market hours, Robinhood overnight traders will only be able to place limit orders where the investor selects the maximum price they would pay for the security or the minimum price they would sell for.
“Robinhood’s 24 Hour Market levels the playing field so extended trading is no longer exclusively reserved for those operating on U.S. East Coast hours. You invest on your time,” the company wrote on its blog.
The move, which Robinhood claims makes them the only US retail brokerage to offer 24/5 trading of single-name stocks, is an attempt to recoup the retail investor attention the company has lost after the pandemic-induced boom fizzled. Robinhood stock has lost over 73% of its value since it went public in 2021.
Information for this story was found via Robinhood, the Wall Street Journal, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.