How Early Can I Trade On Webull

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"Rise and shine, early bird traders! Ever found yourself watching the market news before dawn, itching to make a move on Webull but unsure if the gates are open? You're not alone! Many aspiring and experienced traders alike seek to capitalize on opportunities that arise outside of standard market hours. The good news is, Webull offers robust extended-hours trading capabilities that can give you a significant edge. This comprehensive guide will walk you through everything you need to know about trading early on Webull, from understanding the different sessions to placing your first pre-market order."


Understanding Webull's Trading Schedule: Beyond the Bell

While the New York Stock Exchange (NYSE) and NASDAQ typically operate from 9:30 AM to 4:00 PM ET (Eastern Time), the financial world doesn't simply shut down outside these hours. Webull provides access to these crucial extended sessions, allowing you to react to news, earnings reports, and global events that unfold when the traditional market is closed.

Key Trading Sessions on Webull:

  • Regular Trading Hours (RTH): This is the standard market session, running from 9:30 AM ET to 4:00 PM ET, Monday through Friday. Most trading volume and liquidity occur during these hours.

  • Pre-Market Trading: This session allows you to trade before the regular market opens. On Webull, the pre-market session runs from 4:00 AM ET to 9:30 AM ET. This is a critical window for reacting to overnight news or earnings announcements released before the market opens.

  • After-Hours Trading: This session extends your trading window after the regular market closes. Webull's after-hours session typically runs from 4:00 PM ET to 8:00 PM ET. Similar to pre-market, this time is vital for responding to post-market news and reports.

  • Overnight Trading (24/5 Trading): This is Webull's most extensive offering, allowing you to trade select stocks and ETFs 24 hours a day, 5 days a week. This session typically runs from 8:00 PM ET on Sunday to 3:58 AM ET on Friday. It's important to note that not all securities are available for 24/5 trading. Look for a purple "24" icon on the stock profile page within the Webull app to identify eligible securities.


Step 1: Get Your Webull Account Ready for Early Trading!

Before you dive into the exciting world of extended-hours trading, let's make sure your Webull account is properly set up.

Sub-heading 1.1: Account Type Matters

  • Cash Account vs. Margin Account: While both account types on Webull can generally participate in extended-hours trading, understanding the nuances is important.

    • Cash Accounts: You can only trade with your settled cash balance. This means if you sell a stock, the funds need to settle (typically T+2 business days for stocks) before you can use them again for a new purchase. However, day trading rules (Pattern Day Trader or PDT rule) generally do not apply to cash accounts, provided you're trading with settled funds.

    • Margin Accounts: These accounts offer leverage and allow you to trade with borrowed funds. While this can amplify gains, it also increases risk. If your account value is under $25,000, you are subject to the PDT rule, which limits you to three day trades within a rolling five-business-day period. Exceeding this limit can lead to your account being flagged as a "Pattern Day Trader" and potentially restricted. Extended-hours trades count towards your day trade tally if opened and closed within the same day.

Sub-heading 1.2: Verify Your Account Settings

Webull usually enables extended-hours trading by default. However, it's always a good idea to confirm.

  1. Open the Webull App: Launch the Webull application on your mobile device or desktop.

  2. Navigate to a Stock's Trading Page: Select any stock you're interested in trading.

  3. Check the "Trading Hours" Option: When you go to place an order, you'll typically see a "Trading Hours" option. Make sure it's set to "Include Extended Hours" or "24 Hour Market" for eligible stocks. If it's not, you may need to enable it in your account settings or directly on the order ticket.


Step 2: Choosing Your Weapon – Order Types for Extended Hours

Unlike regular trading hours where various order types (market, limit, stop, etc.) are available, extended-hours trading on Webull has a crucial restriction:

Sub-heading 2.1: The Power of Limit Orders

  • Only Limit Orders are Supported: During pre-market, after-hours, and overnight trading, you can only place limit orders. This is a critical safety measure due to the lower liquidity and higher volatility often present in these sessions.

    • A limit order allows you to specify the maximum price you're willing to pay when buying or the minimum price you're willing to accept when selling. Your order will only be executed at your specified price or better. This protects you from unexpected price swings that can occur when trading outside of regular hours.

    • Why no market orders? Market orders are designed to execute immediately at the best available price. In extended hours, with fewer participants, the "best available price" could be significantly different from what you expect, leading to unfavorable fills.

Sub-heading 2.2: Time-in-Force (TIF) Settings

When placing a limit order, you'll also need to select a "Time-in-Force" (TIF) setting. This determines how long your order remains active. For extended hours, commonly used TIFs include:

  • Day: Your order is active only for the current trading day. If not filled by the end of the current session (whether pre-market, regular, or after-hours, depending on when you place it and select "extended hours"), it will be canceled.

  • Good-Til-Canceled (GTC): Your order remains active until it's filled or you manually cancel it. This is useful if you want to set a price and leave the order open for multiple days, potentially catching a price swing.

  • Good-Til-Date (GTD): Similar to GTC, but your order remains active until a specific date you set.


Step 3: Executing Your Early Morning Trade (A Step-by-Step Guide)

Now that you understand the basics, let's walk through the process of placing a pre-market trade on Webull. The steps are similar for after-hours and overnight trading.

Sub-heading 3.1: Finding Your Stock

  1. Open Webull: Log in to your Webull account.

  2. Search for the Stock: Use the search bar to find the ticker symbol of the stock you wish to trade.

  3. Access the Quote Page: Tap on the stock to go to its detailed quote page.

Sub-heading 3.2: Setting Up Your Order

  1. Tap "Trade": On the stock's quote page, you'll see a "Trade" button. Tap it to open the order entry screen.

  2. Select "Buy" or "Sell": Choose whether you want to buy or sell the stock.

  3. Choose "Limit" Order: Under "Order Type," ensure "Limit" is selected. Remember, this is the only option for extended hours.

  4. Set Your Limit Price: This is crucial. Enter the exact price you are willing to buy or sell at. Be realistic but also firm.

  5. Enter Quantity: Specify the number of shares you want to trade.

  6. Select "Trading Hours": This is the most important step for early trading. Tap the dropdown next to "Trading Hours" and select:

    • "Include Extended Hours" for pre-market and after-hours trading.

    • "24 Hour Market" for eligible overnight trading securities.

  7. Choose Time-in-Force (TIF): Select "Day," "GTC," or "GTD" as per your preference.

Sub-heading 3.3: Confirming and Placing Your Order

  1. Review Order Details: Carefully review all the details of your order: stock symbol, buy/sell, limit price, quantity, trading hours, and TIF.

  2. Confirm Order: If everything looks correct, tap the "Confirm Order" or "Place Order" button.

  3. Monitor Your Order: Once placed, you can monitor your order's status in the "Orders" section of your Webull account. It will show as "Working" until filled, partially filled, or canceled.


Step 4: Navigating the Risks of Extended-Hours Trading

While the ability to trade early offers significant advantages, it's absolutely vital to be aware of the inherent risks. Extended-hours trading is not for the faint of heart and requires a deeper understanding of market dynamics.

Sub-heading 4.1: Lower Liquidity

  • Fewer Participants: During extended hours, there are significantly fewer buyers and sellers in the market compared to regular hours. This reduced volume leads to lower liquidity.

  • Impact: Lower liquidity means your orders might take longer to fill, or they might not fill at all. It also contributes to wider bid-ask spreads.

Sub-heading 4.2: Wider Bid-Ask Spreads

  • The Price Gap: The bid price is the highest price a buyer is willing to pay, and the ask price is the lowest price a seller is willing to accept. The difference between these two is the spread.

  • Impact: Due to lower liquidity, bid-ask spreads can be much wider during extended hours. This means you might buy at a higher price or sell at a lower price than you would during regular hours, effectively eating into your potential profits.

Sub-heading 4.3: Increased Volatility

  • Sudden Price Swings: With fewer participants and often breaking news driving activity, extended hours can experience extreme price volatility. A small order can have a disproportionately large impact on the price.

  • Impact: Your limit order might be "skipped" if the price moves too rapidly past your desired level, or you might see the price move against you quickly after your order is filled.

Sub-heading 4.4: Lack of National Best Bid and Offer (NBBO) Protection

  • Regular Hours Protection: During regular hours, brokerages are generally required to execute customer orders at the National Best Bid and Offer (NBBO) – the best available price across all exchanges.

  • Extended Hours Exception: This rule does not apply to extended-hours trading. This means you might get a less favorable price on Webull compared to what might be available on another extended-hours trading system at the same time.

Sub-heading 4.5: News and Unanticipated Events

  • Rapid Reactions: Major corporate announcements (earnings, mergers, clinical trial results) often occur after market close or before market open. Extended hours allow for immediate reactions to this news.

  • Impact: While this presents opportunities, it also means prices can move dramatically and unpredictably based on information that is still being processed by the wider market.


Step 5: Maximizing Your Early Trading Experience on Webull

While the risks are real, there are ways to approach extended-hours trading strategically on Webull.

Sub-heading 5.1: Do Your Homework

  • Stay Informed: Before jumping into pre-market, ensure you're up-to-date on any relevant news, earnings reports, or economic data releases that might affect the stocks you're watching.

  • Understand the Catalyst: Is there a specific reason a stock is moving in pre-market? Is it a genuine catalyst or just low-volume noise?

Sub-heading 5.2: Use Technical Analysis

  • Pre-Market Charts: Webull's charting tools allow you to view extended-hours data. Analyze the price action and volume during pre-market to gauge sentiment and potential trends.

  • Support and Resistance: Identify key support and resistance levels from previous trading sessions that might come into play during extended hours.

Sub-heading 5.3: Practice with Paper Trading

  • Webull Paper Trading: Webull offers a fantastic paper trading feature that allows you to simulate trades with real-time market data without risking actual capital. This is an invaluable tool for practicing extended-hours strategies and getting comfortable with the order entry process and market behavior.

Sub-heading 5.4: Start Small

  • Manage Risk: Especially when you're new to extended-hours trading, begin with smaller position sizes than you might use during regular hours. This helps limit your potential losses if a trade goes against you due to volatility.


Frequently Asked Questions (FAQs) - How to Trade Early on Webull

How to enable extended hours trading on Webull?

To enable extended hours, when placing a limit order, tap the "Trading Hours" dropdown and select "Include Extended Hours" or "24 Hour Market" for eligible securities.

How to place a pre-market order on Webull?

Navigate to the stock, tap "Trade," select "Limit" order type, set your limit price and quantity, then crucially, select "Include Extended Hours" under "Trading Hours" before confirming.

How to see pre-market and after-hours data on Webull charts?

On the stock's chart, look for a "Settings" or "Chart Toolbox" icon (often a clover or gear). Within those settings, you should find an option to "Include Extended Hours" or "Show Extended Hours."

How to know if a stock is eligible for Webull's 24/5 trading?

Look for a purple "24" icon next to the stock's ticker symbol on its profile page within the Webull app. Not all stocks are available for this continuous trading.

How to cancel an extended-hours order on Webull?

Go to the "Orders" section of your Webull account. Find the active order you wish to cancel and tap on it. You will see an option to "Cancel Order."

How to understand the risks of trading early on Webull?

Be aware of lower liquidity, wider bid-ask spreads, increased volatility, and the absence of NBBO protection. Start small and do thorough research.

How to avoid day trading violations when trading early on Webull?

If you have a margin account with less than $25,000, remember that opening and closing a position within the same day (even across extended and regular hours) counts as a day trade. If you exceed three day trades in five rolling business days, your account can be flagged as a Pattern Day Trader. Cash accounts generally avoid this if trading with settled funds.

How to practice extended hours trading on Webull without real money?

Utilize Webull's "Paper Trading" feature. This allows you to place simulated trades with real-time market data, providing a risk-free environment to learn and test strategies.

How to react to news during extended hours on Webull?

Stay informed about company news and economic releases. Use limit orders to control your entry and exit points, and be prepared for rapid price movements.

How to set a Good-Til-Canceled (GTC) order for extended hours on Webull?

When placing your limit order, select "GTC" from the "Time-in-Force" dropdown menu. This will keep your order active until it's filled or you manually cancel it.

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