Risk of Unlinked Markets. Depending on the extended hours trading system or the time of day, the prices displayed on a par- ticular extended hours trading system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive a worse price in one extended hours trading system than you would in another extended hours trading system.
Risk of Unlinked Markets. Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours trading system may not reflect the prices in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive a price in one extended hours trading system inferior to what you would in another extended hours trading system. • Risk of News Announcements - Normally, issuers make news announcements that may affect the price of their securities after regular trading hours. Similarly, important financial information is frequently announced outside of regular trading hours. In extended hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of a security.
Risk of Unlinked Markets. I understand that your Extended Hours quotes, which are provided by a leading electronic communication network ("ECN"), consolidate the best bids and offers from available market centers participating in Extended Hours Trading. However, I understand that, during the Extended Hours Session, prices being displayed by market centers are not necessarily fully accessible in the same manner as they are during regular market hours (e.g., key linkages between market centers are not operating or are accessible during the entire Extended Hours Session). I understand that this means that the prices displayed during an Extended Hours Session may not reflect prices that are accessible before or after regular market hours. As a result, I understand that my order may not get executed in the Extended Hours Session, or I may receive a price that is inferior to a price that I may have been able to receive in another Extended Hours Trading system or during regular market hours.
Risk of Unlinked Markets. I understand that your Extended Hours quotes, consolidate the best bids and offers from available market centers participating in Extended Hours trading. However, I understand that, during the Extended Hours session, prices being displayed by market centers are not necessarily fully accessible in the same manner as they are during regular market hours (e.g., key linkages between market centers are not operating or are accessible during the entire Extended Hours session). I understand that this means that the prices displayed during an Extended Hours session may not reflect prices that are accessible before or after regular market hours. As a result, I understand that my order may not get executed in the Extended Hours session, or I may receive a price that is inferior to a price that I may have been able to receive in another Extended Hours trading system or during regular market hours. Illiquid Markets Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the more liquid the stock. Liquidity is important because greater liquidity makes it easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. I understand that Extended Hours markets tend to be more illiquid than markets operating during regular market hours. NASDAQ market makers and exchange specialists will frequently not provide Extended Hours quotes, so there may not be concurrent buyers and sellers for a stock, or the prices to buy and sell a stock (or the "spread") may be far apart. This means that any order I enter during an Extended Hours session may only be partially executed, not executed at all, or may be executed at a less advantageous price than I might have received in a liquid market. Volatility Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. I understand that Extended Hours markets may be more volatile than markets during regular market hours - especially if there is breaking news or discussion in chat rooms about a particular security. This means that my order may only be partially executed or not at all. My order may also be executed at a price that is significantly worse than prices that were available during the preceding day or during regular market hours.
