Can You Trade at 4 AM on Webull?

Are you burning with whether you can trade at 4 AM on Webull? Let me solve this for you!

Webull offers pre-market trading starting at 4:00 AM Eastern Standard Time (EST). During pre-market hours, users can place limited orders and potentially take advantage of market-moving news or events before the market opens. But it’s important to note that pre-market trading comes with risks, such as wider bid-ask spreads and higher price volatility.

In this blog, I’ll uncover the truth about whether you can trade at 4 AM on Webull. Let’s get started!

Trading at 4 AM With Webull

Yes, you can trade at 4 AM on Webull. Whether you want to seize opportunities before or after the bell, Webull’s extended hours of trading have got your back!

Webull’s extended hours trading lets you make moves even after the closing bell. There are two extended hours trading sessions offered by Webull: pre-market hours and after-hours trading.

  • Pre-market hours start at 4:00 AM EST and end at 9:30 AM EST.
  • After-hours trading begins at 4:00 PM EST and ends at 8:00 PM EST. 

Webull allows you to trade outside the regular market hours. With this superpower, you can pounce on market-moving news or events that happen before or after the rest of the world wakes up.

Now, don’t go getting too excited as extended hours trading does come with risks:

  • Due to lower trading volume during these sessions, the bid-ask spread may be wider. This makes it harder to execute trades at the desired price. 
  • And let’s not forget about the potential for price volatility, which may be higher during extended hours of trading. This leads to a greater risk of loss.

But remember, Webull’s disclaimer says that extended hours of trading could be temporarily or permanently suspended without notice.

So, while it’s great to trade outside of regular market hours, it’s not a sure thing.

Beyond the Bell: Trading During Extended Hours 

To participate in the after-hours action, make sure to place limit orders and check the “Include after-hours” box. And remember, no market orders or stop orders are allowed.

After all, market orders or stop orders may not be suitable for these illiquid trading sessions.

Limit Orders Only

Suppose you’re eager to jump into the stock market and take advantage of Webull’s extended hours of trading. You’ve done your research. And you know exactly what stock you want to buy. You log into your account and place your order. But nothing happens. What went wrong? 

It’s possible that you placed a market order or a stop order. These are not suitable for extended-hours trading. Just use limit orders. And you’ll be back on track.

You get to set the price at which you want to buy or sell a stock. And if the stock reaches that price or better, your order gets executed. 

Beware of the market orders and stop orders, though, for they have no specific price attached to them. This can make them quite risky during extended hours of trading!

No Market Orders and Stop Orders

Market orders can be a bit extreme during extended hours of trading. You might end up buying or selling a stock at a price that’ll make you extremely happy or sad. And I guess that’s not exactly what you intended, right?

You’re triggered when a stock hits a specific price. But let’s be honest. During extended hours of trading, the stock can go from zero to a hundred real quick. This is because the stock may suddenly spike or drop in price. This triggers your stop order and causes you to buy or sell at an unfavorable price.

Understanding the Bid-Ask Spread

A pro tip: When you’re out trading during extended hours, keep an eye on the bid-ask spread. That’s the difference between what buyers want to pay and what sellers want to accept. 

And during extended hours, that spread can be wider. 

So, if you’re planning to do some after-hours trading on Webull, make sure you don’t go all market orders or stop orders. Stick to limit orders. Plus, don’t forget to have a good grasp of that bid-ask spread so that you don’t accidentally end up paying more. And, as always, do your homework and don’t be reckless.

Mastering the Art of Extended Hours Trading

Are you considering trading during Webull’s extended hours trading? Keep calm and collected. And check out these tips to maximize your extended hours trading game on Webull:

Set Realistic Expectations

Extended hours trading can be highly volatile. And it’s essential to keep that in mind when setting your expectations. Don’t expect to make a killing overnight. Instead, use this extra trading time to nab deals you might have missed during the day.

Conduct Research Before Placing Trades

Before you start buying and selling like there’s no tomorrow, do your homework! Check out the stock’s latest buzz and trends. Plus, keep an eye out for any potential pitfalls or uncertainties.

Use Stop-Loss Orders to Mitigate Risks

The stock market can be a risky ride during extended hours of trading. To mitigate your risk, consider using stop-loss orders. These orders will automatically save your position if the stock starts spiraling down.

Monitor Open Positions During Regular Trading Hours

Just because extended hours trading is available doesn’t mean you should neglect your positions during regular trading hours. Keep an eye on your open positions. Also, be prepared to make adjustments as necessary based on market conditions.

Follow these tips. Keep your head cool. Have a solid strategy. And voila! You’ll be on your way to happy trading.

Final Thoughts

Webull’s extended hours trading provides a valuable opportunity for traders to trade even at 4 AM, taking advantage of market movements outside regular trading hours.

But it’s essential to understand the risks and limitations that come with it. Varying from wider bid-ask spreads to potential price volatility. 

To ride the extended hours trading wave on Webull, remember to set limit orders. Conduct research. And employ stop-loss orders to dodge potential risks. So, if you’re ready to dive into the world of extended-hours trading, approach it with a clear strategy and a prudent mindset.