Personal Finance

After Hours Trading on TSX

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  • Oct 1st, 2008 12:44 am
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[OP]
Deal Addict
User avatar
Oct 25, 2001
2543 posts
67 upvotes
Oakville

After Hours Trading on TSX

Maybe it is just the few times I've looked, but it appears that my portfolio components never go up in after hours trading, they only go down.

On a day like today (TSX composite up about 4%) I saw about $7,000 in gains lost between 4pm and whenever after hours trading ceases.

When does after hours trading stop and are all stocks on the TSX eligible for after hours trading?

Are there any real-time views of after hours bid/ask prices for the TSX traded equities?

Is the fact that some people are buying/selling equities for much less than their 4pm last trade more likely than they would buy/sell them for much more? I'm trying to figure out if there is an inherent advantage to buy an equity in after hours trading if it closes near your own "strike" price.

One example - Encana "closed" at 70.07 but traded after hours for 67.93.
3 replies
Newbie
Mar 24, 2006
19 posts
cannon_fodder wrote:
Sep 30th, 2008 4:52 pm
Maybe it is just the few times I've looked, but it appears that my portfolio components never go up in after hours trading, they only go down.

On a day like today (TSX composite up about 4%) I saw about $7,000 in gains lost between 4pm and whenever after hours trading ceases.

When does after hours trading stop and are all stocks on the TSX eligible for after hours trading?

Are there any real-time views of after hours bid/ask prices for the TSX traded equities?

Is the fact that some people are buying/selling equities for much less than their 4pm last trade more likely than they would buy/sell them for much more? I'm trying to figure out if there is an inherent advantage to buy an equity in after hours trading if it closes near your own "strike" price.

One example - Encana "closed" at 70.07 but traded after hours for 67.93.
There are a couple of last prices that you could be seeing.

The first is the last sale price, ie: the actual last trade in the normal TSX "continuous" trading session. Today, this was at 16:58 and the price was 67.96.

The second, alluded to above, is the closing price, which, on most markets is calculated using a closing auction. TSX calls this the Market-on-close (MOC) session. You can read about the details in the above link. The idea of using a closing auction for the official closing price is to prevent manipulation of the closing price, since it is often used to value other securities. (Think of an unscrupulous mutual fund manager trying to juice his bonus by jacking up the closing prices of the securities in his portfolio on Dec 31).

Just taking a quick look at GlobeInvestor, they seem to use the first definition, since the value matches. I can't find the MOC-derived closing price, but it could be the number you originally posted.

Now, the TSX also has a last-sale trading session from 4:15 to 5pm daily, where you can trade only at the closing price. I'm not sure if any broker will pass retail orders entered after 4:15 to the last-sale trading session. I suspect they just hold them until the next day.

Alternatively, there are other Canadian alternative trading systems that could trade the stock after 4pm. Pure Trading ATS trades ECA and operates it's 'continuous' trading session until 5pm daily. Again, not sure a broker would route your order there after 4pm, but they could.

A further alternative would be for your broker to route your order to an American exchange/ATS that has longer hours. ARCA Exchange (owned by NYSE) operates from 4am to 8pm ET (they also trade ECA).

I suspect an 'advanced-level' broker like Interactive Brokers would allow a retail investor to access these last two trading venues (and quotes thereof).
[OP]
Deal Addict
User avatar
Oct 25, 2001
2543 posts
67 upvotes
Oakville
Thanks very much to both of you. What I'm not clear on is how you specifically create a MOC order. I will look for that tomorrow (I just started using Interactive Brokers) but I can't say that I remember seeing anything like that.
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