The framework for U.S. equities is evolving, with Cboe 24x5 trading emerging as a proposed model for extended market hours. While these expanded windows offer investors alternative times to access the market, it is critical to understand that extended-hours trading involves significantly increased risks, including potential for greater losses, and is not suitable for all investors. Understanding the mechanics of these sessions, including specific order types, buying power calculations, and liquidity constraints, is necessary for navigating the current and future landscape of extended trading.

Key Takeaways

• Extended-hours trading involves significantly increased risks, including potential for greater losses, and is not suitable for all investors.

• Cboe has submitted a proposal to launch near 24x5 U.S. equities trading on its EDGX exchange, targeted for December 2026 pending regulatory approval.

• Webull offers an overnight trading session operating from 8:00 PM to 4:00 AM ET, providing access to select securities outside standard hours.

• Cboe has received SEC approval to offer extended pre-market and post-market trading sessions for select multi-listed equity options beginning in July 2026.

• Investors participating in any extended session must adhere to specific rules, such as using limit orders only, and navigate distinct settlement and day trading timelines.

Part 1. Understanding Cboe 24x5 Trading Expansion

1.1 The Proposed U.S. Equities Trading Model

As global interest in U.S. markets persists, exchanges are evaluating models to broaden access. Cboe Global Markets announced its intention to offer 24-hour, five-days-a-week (24x5) trading for U.S. equities on its Cboe EDGX Equities Exchange (EDGX). This proposal is subject to regulatory review by the Securities and Exchange Commission (SEC) and the readiness of industry infrastructure. If approved, the launch is anticipated in December 2026.

Cboe Global Markets — https://www.prnewswire.com/news-releases/cboe-files-proposal-with-the-sec-to-launch-near-24x5-us-equities-trading-302715022.html

The proposed Cboe 24x5 trading framework outlines plans to make all listed NMS stocks available for trading from Sunday 9:00 PM ET to Friday 8:00 PM ET, with a one-hour operational pause between 8:00 PM and 9:00 PM ET Monday through Thursday. All trades executed under this model are expected to be cleared through the Depository Trust and Clearing Corporation (DTCC). Cboe aims to leverage its existing global infrastructure to facilitate this expansion, citing growing demand from market participants in regions such as Asia Pacific.

Cboe Global Markets — https://ir.cboe.com/news/news-details/2025/Cboe-Announces-Plans-to-Launch-24x5-U.S.-Equities-Trading-2025-NwujmKvsxb/default.aspx

1.2 Multi-Listed Single Stock Options Extensions

Alongside equities, options trading availability is also expanding. The SEC has approved Cboe's filing to offer extended trading hours for select multi-listed equity options. Scheduled to begin on July 13, 2026, the Cboe Options Exchange (C1) will introduce a pre-market session from 7:30 AM ET to 9:25 AM ET and a post-market session from 4:00 PM ET to 4:15 PM ET, Monday through Friday.

Cboe Global Markets — https://ir.cboe.com/news/news-details/2026/Cboe-Receives-SEC-Approval-to-Offer-Extended-Trading-Hours-for-Select-Multi-Listed-Single-Stock-Options/default.aspx

This expansion will cover some of the most actively traded options. To be eligible for these new sessions, equity options must meet specific volume and liquidity thresholds, including an average daily volume of 150,000 contracts or higher over the preceding six months and an underlying equity market capitalization of $50 billion or more. This measured rollout is designed to maintain market safeguards while offering investors additional timeframes to manage their options positions.

Part 2. Brokerage Review: Platforms for Extended Hours

2.1 Webull Overnight Trading Access

For investors seeking access to current extended market hours, Webull provides an overnight trading session that operates from 8:00 PM to 4:00 AM ET, Sunday through Thursday. This session allows for trading 24 hours a day, 5 days a week for select securities. Rates vary by service provider; please refer to the latest pricings.

Webull structures its extended hours offerings comprehensively, integrating pre-market, regular market, after-hours, and overnight sessions within its platform. In the overnight session, executions and quote data are provided by overnight alternative trading systems (ATS). An ATS functions outside traditional stock exchanges to match buyers and sellers. It is important to note that major price fluctuations or corporate actions can temporarily halt securities in this environment.

Pros and Cons of Overnight Trading on Webull

• Pros: Offers access to market movements outside standard hours; clearly identifies eligible securities with a "24H" icon; integrates directly into existing cash and margin accounts.

• Cons: Significantly lower liquidity compared to regular hours; shorting and fractional shares are not available; restricted strictly to limit orders.

2.2 Order Types and Trading Session Hours

Operating in extended sessions requires adherence to specific order types. On Webull, only LIMIT orders for whole-share amounts are supported during the overnight session. Market, stop, stop limit, and trailing stop orders are prohibited to mitigate the risks associated with volatile pricing. Orders placed in the overnight session are treated as day orders; if left unfilled, they are automatically canceled at 4:00 AM ET.

Selecting the "Overnight" trading hours option ensures the trade is active strictly between 8:00 PM and 4:00 AM ET. If an investor attempts to place a standard day order without specifically selecting the extended hours option during after-hours, the order will typically be routed to the market at the start of the next regular trading session.

Part 3. Navigating Settlement and Buying Power

3.1 Buying Power Calculations by Account Type

Understanding how buying power is calculated is fundamental when participating in extended hours, including the anticipated Cboe 24x5 trading framework and current ATS models. On Webull, overnight trading buying power varies based on the account structure:

• Cash Account: Buying power is based on the "Available to Withdraw" amount. Proceeds from intraday sales cannot be used during the same night's overnight session.

• Margin Account: Buying power is derived from the cash balance, excluding pending deposits. Unlike cash accounts, proceeds from intraday sales can be utilized during the same night's overnight session.

However, margin usage is not permitted in the overnight session. If an order's dollar amount exceeds the account's Cash Buying Power, it will be rejected. Additionally, if an account holds any short position, including covered options, the buying power for the overnight session is reduced to $0.

3.2 Day Trade Counting Rules in Overnight Sessions

Trades placed in the overnight session between 8:00 PM and 11:59:59 PM ET are marked with a trade date of the next business day (T+1). Conversely, trades placed between 12:00 AM and 3:59:59 AM ET are marked with a trade date of the current business day (T).

Definition Block: Day Trade
A day trade occurs when a security is bought and sold on the same trade date.

Because of the midnight cutoff, buying a stock at 10:00 AM ET on Wednesday (Trade Date T) and selling it at 10:00 PM ET on Wednesday (Trade Date T+1) does not constitute a day trade. However, buying a stock at 9:00 PM ET on Tuesday (Trade Date T+1, Wednesday) and selling it at 10:00 AM ET on Wednesday (Trade Date T, Wednesday) incurs one day trade.

Part 4. Risk and Trust-Building Regulatory Framework

4.1 Regulatory Protections and Inherent Risks

Extended trading hours, whether through an ATS or proposed frameworks like Cboe 24x5 trading, are subject to regulatory oversight from entities such as the SEC and FINRA. However, the protections inherent in standard sessions do not always apply equally. Specifically, the Order Protection Rule (Regulation NMS) does not apply during extended hours. Consequently, there is no requirement for trades to be executed at the best available price across all exchanges.

Firms like www.webull.com require users to read and understand an Extended Hours Trading Disclosure before participating. If an account is not in good standing, such as facing an active margin call, trading in the overnight session may be restricted to protect the account from further violations.

4.2 Liquidity, Volatility, and Pricing Dynamics

Participating in these sessions involves substantially increased risks. Investors must balance the potential benefit of extended access with the reality of lower market participation.

• Increased Volatility: Without the protections of Regulation NMS and due to fewer participants, prices can fluctuate widely.

• Lower Liquidity: Trading volumes are typically lower, making it challenging to execute large orders without significantly affecting the stock price. This often leads to wider bid-ask spreads.

• Corporate Actions: A pending corporate action may temporarily halt a security from trading to ensure proper processing. Additionally, purchasing a stock in the overnight session on its ex-dividend date (if bought before midnight) will not entitle the purchaser to the dividend, as the transaction is marked T+1.

Part 5. Step-by-Step Guide to Extended Trading

For investors utilizing platforms that offer overnight access, understanding the mechanical steps for order entry is essential to manage risk appropriately.

Steps for Placing an Overnight Trade on Mobile App:

1. Confirm the target stock is eligible by locating the "24H" icon.

2. Navigate to the Trade section and select Buy or Sell.

3. Tap Order Type and ensure Limit is selected.

4. Specify the exact Limit Price and whole-share Quantity.

5. Select Trading Hours and choose Overnight.

6. Set the Time-in-Force to Day.

7. Tap Confirm to submit the limit order.

Steps for Placing an Overnight Trade on Desktop:

1. Confirm the stock displays the 24H tradeable icon.

2. Right-click on the chart and select Create New Order.

3. Click Order Type and strictly choose Limit.

4. Specify the Limit Price and Quantity.

5. In the Trading Hours dropdown, select Overnight.

6. Click Place Order to route the transaction.

Investors can also subscribe to Overnight Consolidated Level 2 data to view the 50 best bid and offer quotes during the 8:00 PM to 4:00 AM ET session. Rates vary by service provider; please refer to the latest pricings.

Frequently Asked Questions (FAQs)

Q1: What are the exact hours for overnight trading?
The current overnight trading session on platforms like Webull operates from 8:00 PM to 4:00 AM ET, Sunday through Thursday.

Q2: What is the proposed Cboe 24x5 trading schedule?
Cboe has proposed to launch near 24x5 U.S. equities trading on its EDGX exchange from Sunday 9:00 PM ET to Friday 8:00 PM ET, with a one-hour pause between 8:00 PM and 9:00 PM ET Monday through Thursday, pending regulatory approval.

Q3: Can I short sell a stock during the overnight session?
No, shorting is not available in the overnight session. Furthermore, only limit orders for whole-share amounts are supported; market and fractional orders are prohibited.

Q4: How does trading between 8:00 PM and midnight affect settlement?
Trades executed in the overnight session between 8:00 PM and 11:59:59 PM ET are marked with a trade date of the following business day (T+1).

Q5: Why might my overnight limit order not execute?
An order will only fill if it meets the specified limit criteria and there is sufficient liquidity. Due to lower trading volumes and wider spreads during extended hours, limit orders may remain unfilled and automatically cancel at 4:00 AM ET.

The Bottom Line

The proposed Cboe 24x5 trading model and the current availability of overnight brokerage sessions represent an expansion of trading windows that carries distinct and heightened risks investors should carefully evaluate. While these extended hours offer additional flexibility to navigate news and events, they require a disciplined understanding of order restrictions, T+1 settlement rules, and the severe impacts of lower liquidity and elevated volatility.

Disclosure:

Webull Financial LLC (member SIPC, FINRA) offers self-directed securities trading. All investments involve risk. More info: https://www.webull.com/policy

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. Investing involves risk, including the risk of loss of principal.