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Say I am buying stock XYZ, is it possible to close my position, in this case sell, as soon as open market hours close and not have it count as a day trade or do I have to wait until the next market open?

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    Your title refers to being flagged as a pattern day trader, but your question makes no reference to this. Oct 29, 2014 at 19:21
  • @ChrisInEdmonton fixed it.. and only 9 years later
    – Cfomodz
    Nov 8, 2023 at 6:02

2 Answers 2

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If you bought stock XYZ during the day, and then you sold XYZ in after hours (after 4pm ET) that same day, then it still counts as a day trade in terms of the pattern day trader rules. If you don't want it to be a day trade, then you will have to wait until the next morning to sell it.

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    From what I have found the exact actions that define pattern day trading is left to the judgment of each brokerage firm. Some make the cutoff at the end of evening extended hours (20:00 eastern), other make the cutoff at midnight eastern and others at the open of morning extended hours. This applies to time of trade execution not placement of the order. Even more gray area with some brokers offering 24 hour extended-overnight trading on select ETFs.
    – Max Power
    Aug 13, 2019 at 2:02
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I know that corporate actions, such as splits or dividends, are considered next day as of 20:00 eastern time. 20:00 is also the change from the PM session to "extended overnight" EXTO session.07:00 is the start of the AM session. This is info is for stocks only, other securities have their own thing. Even options exchanges have different extended hours.(which is odd considering that they are treated similar to the underlying stocks in most regulations, tax code, and the generic regular-hours examples of day trading.) Seems to be a rather elusive topic, possibly the volumes are so low that the situation is rare, the official rules may also have sloppy semantics that just don't define the specific cutoff times.

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