When Do Options Markets Close?
Options trading hours extend from 9:30 AM to 4:15 PM ET every weekday, excluding federal holidays. This time window allows ample opportunities for investors to make informed trades throughout the market day. It is essential to note that the final 30 minutes of trading, from 4:00 PM to 4:15 PM ET, is reserved exclusively for closing-only orders. During this closing window, no new positions can be opened, and only existing positions can be adjusted or closed out.
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Types of Options Orders
Before delving into order execution times, let’s differentiate between two main types of options orders: day orders and good-till-canceled (GTC) orders. Day orders expire on the same trading day and must be executed before the market closes. In contrast, GTC orders remain valid until canceled or executed, offering greater flexibility in order placement and execution.
Order Execution Times
For both day orders and GTC orders, the cut-off time for order submission is 4:00 PM ET. Any orders submitted after this time will not be executed until the following trading day. This imperative time frame applies to all types of trades, including opening new positions, closing existing positions, or modifying existing positions.
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What Time Does Options Trading Stop
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Day Order Expiration and GTC Order Cancellation
Understanding when day orders expire and how to cancel GTC orders is crucial for effective options trading management. As mentioned earlier, day orders automatically expire at the end of the trading day. If an order is not executed before 4:00 PM ET, it will be canceled and no longer eligible for execution.
GTC orders, on the other hand, remain active until canceled. To avoid unintentionally holding an order that may no longer align with your trading strategy, it’s essential to cancel GTC orders that are no longer needed. To cancel a GTC order, you can simply contact your broker or submit
