I'm on U.S. Central Time (CST), and know that some people trade after ARCA opens at 4:00am CST. However, I've noticed trades going through at 10pm or 1am on NASDAQ and AMEX stocks. HOW is someone able to trade at those hours when I cannot? WHO is making these trades late at nite or early morning before ARCA opens? These trades between 10pm and 1am at nite are often large blocks or consistent blocks of 100 every few seconds, and do not show up on ARCA, only showing on Time and Sales. WHY do these late traders trade in large blocks(such as 300,000 shares) or consistent trades of 100 shares? WHAT is the purpose?
from what i have come to understand, "crossing networks," essentially ECNs only for those trading 50k shares or more, negotiate their prices during the day - approximately at VWAP - and are allowed to post them to the tape after hours. two examples of these types of trading outlets are Posit and Liquidnet. look them up.
Thanks for your reply, diligent. I checked out posit and liquidnet. That's about what I thought was happening, either MMs or ECNs buying. It doesn't seem fair that they can post orders at times when the general public cannot. Of course, most things in life are not fair, especially stock trading. I'd like to hear others' thoughts too.
"It doesn't seem fair that they can post orders at times when the general public cannot" it doesnt and it isnt, imo, but they do.
Those times between 10pm-1am are times that I recently noticed trades posting. Of course, I've noticed these types of trades posting anytime from 8pm-3am(when ARCA opens), times when the market is closed to us "common" traders.