Brokerage Robinhood said that in less than a year since its launch, trading volume on the Robinhood 24 Hour Market during the overnight session has surpassed $10 billion.
The brokerage first introduced the Robinhood 24 Hour Market to U.S. customers in May 2023.
Many market-impacting events occur during off-hours on the East Coast of the United States, and the 24-Hour Market provides real-time action. This allows clients to manage their portfolios and react to new information at any time, making the after-hours trading service instantly popular with Robinhood clients.
"With the 24-Hour Market, customers finally have the flexibility and convenience to invest on their own timeframe, not Wall Street's," Robinhood said in a statement.
"We believe the future of investing is here, and it's 24/7. In recent weeks and months, we've seen a significant shift in trading activity in the 24-hour market and a marked increase in popularity among Robinhood customers outside of traditional market hours," the company said.
Robinhood noted that on its busiest days, up to 25 percent of total daily trading volume occurs during non-traditional market hours. Average daily trading volume in the overnight session has increased every month since September 2023, with February setting a record for average trading volume in the overnight session. February's volume was also 1.6 times higher than January's, 2 times higher than December's, and 2.6 times higher than November's. The best trading days in terms of overnight volume were the evening of March 3 and the morning of March 4.
This trend underlines the growing interest in trading during non-traditional market hours.
The broker notes that the 24-hour market begins at 8 p.m. ET on Sunday and ends at 8 p.m. ET on Friday, allowing the company's clients to trade at their convenience.
However, Robinhood warns that after-hours trading comes with additional risks, including reduced liquidity, increased volatility, wider spreads, and price uncertainty.
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