Hey there, aspiring trader! Ever wondered how some investors seem to be making moves before the market even officially opens, or long after it closes? That's the magic of extended hours trading, and if you're looking to seize those opportunities, you're in the right place. E*TRADE, a popular platform, allows its users to participate in these sessions. But how do you get started on the app? Let's dive in!
Extended hours trading refers to buying and selling securities outside of the standard 9:30 AM to 4:00 PM ET market hours. This includes both pre-market and after-hours sessions. It can be a powerful tool for reacting to breaking news, earnings announcements, or global market shifts that happen outside regular trading times. However, it's crucial to understand that trading during these periods comes with its own unique set of risks, which we'll also cover.
This comprehensive guide will walk you through the steps to enable and execute extended hours trades on the E*TRADE app, ensuring you're well-equipped to navigate this dynamic trading environment.
Step 1: Are You Ready for Extended Hours? Understanding the "Why" and "What"
Before we even touch the app, let's make sure you're truly ready for extended hours trading. It's not just about clicking a button; it's about understanding the landscape.
Sub-heading: Why Extended Hours Trading?
Opportunity to React Quickly: Imagine a major company releases its earnings report at 4:05 PM ET. If you only trade during regular hours, you'd have to wait until 9:30 AM ET the next day to react. Extended hours allow you to respond immediately to such news.
Flexibility: For those with busy schedules during standard market hours, extended hours offer a window of opportunity to manage your portfolio.
Capturing Early/Late Movements: Sometimes, significant price movements occur in pre-market or after-hours due to specific news. Extended hours trading allows you to potentially capitalize on these shifts.
Sub-heading: What are E*TRADE's Extended Hours?
E*TRADE generally offers the following extended trading sessions on official market business days (excluding holidays):
Pre-Market Session: 7:00 a.m. to 9:30 a.m. ET, Monday through Friday.
Regular Trading Session: 9:30 a.m. to 4:00 p.m. ET, Monday through Friday.
After-Market Session: 4:00 p.m. to 8:00 p.m. ET, Monday through Friday.
Extended Hours Overnight Session: 8:00 p.m. until 7:00 a.m. ET, Sunday through Thursday (for certain ETFs and accessible via etrade.com or phone).
It's important to note that these times can change, so always refer to the latest E*TRADE disclosures.
Step 2: Ensuring Your Account is Ready (The Foundation)
Before you can place an extended hours trade, you need to make sure your E*TRADE account is properly set up.
Sub-heading: Do You Have an E*TRADE Account?
This might seem obvious, but it's the very first requirement! If you don't have one, you'll need to open a brokerage account with E*TRADE. This typically involves:
Visiting E*TRADE's Website or App: Start the account opening process.
Providing Personal Information: This includes your name, address, Social Security number, and financial details.
Funding Your Account: You'll need to deposit funds into your account to trade.
Sub-heading: Accepting the Extended Hours Trading Agreement
This is a crucial step! E*TRADE requires you to acknowledge and accept their Extended Hours Trading Agreement. This agreement outlines the specific risks and rules associated with trading outside of regular market hours.
Log in to your E*TRADE Account: Use your credentials to log in, preferably on the desktop website first, as some agreements are easier to review there.
Navigate to Agreements/Disclosures: Look for sections like "Account Settings," "Legal," "Disclosures," or "Agreements."
Locate "Extended Hours Trading Agreement": Read through this document carefully. It will detail important aspects like:
Lower Liquidity: Fewer buyers and sellers mean it can be harder to execute trades at your desired price.
Higher Volatility: Prices can swing dramatically with less volume.
Wider Bid-Ask Spreads: The difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept can be larger.
Limit Orders Only: E*TRADE generally only accepts limit orders for extended hours trading to help manage price risk. Market orders are typically not accepted.
Day Orders Only: Orders are usually "Day" orders, meaning they expire at the end of the extended trading session if not filled. Good-Till-Canceled (GTC) orders typically are not accepted in extended hours.
Accept the Agreement: Once you understand the risks, electronically accept the terms. If you don't see this option or are unsure, it's best to contact E*TRADE customer support directly. They can guide you to the specific agreement or confirm if your account is already enabled.
Self-correction: While some online sources might imply that you "enable" extended hours trading as a separate toggle, for E*TRADE, it's primarily about accepting the Extended Hours Trading Agreement. Once that's done, your account is typically configured to allow these order types. The functionality is then accessible when placing trades.
Step 3: Placing an Extended Hours Trade on the E*TRADE App (The Action)
Now that your account is ready, let's walk through placing an extended hours trade on the E*TRADE mobile app.
Sub-heading: Launching the E*TRADE App and Logging In
Open the E*TRADE App: Locate the E*TRADE app icon on your smartphone or tablet and tap to open it.
Log In: Enter your User ID and password. You might also use biometric authentication (fingerprint or face ID) if you've set it up.
Sub-heading: Navigating to the Trade Screen
Find the "Trade" or "Place Order" Option: Once logged in, look for a prominent "Trade" button, usually at the bottom navigation bar or a clear "Place Order" option within a specific stock's detail page.
Search for the Security: Enter the ticker symbol of the stock or ETF you wish to trade (e.g., AAPL, SPY).
Sub-heading: Configuring Your Extended Hours Order
This is where the magic happens for extended hours!
Select "Buy" or "Sell": Indicate whether you want to buy or sell the security.
Enter Quantity: Specify the number of shares you wish to trade.
Choose "Order Type" - Critically, Limit Order: As mentioned, E*TRADE generally only accepts limit orders for extended hours trading.
Tap on "Order Type" (it might default to "Market Order").
Select "Limit."
Set Your Limit Price: This is the maximum price you're willing to pay for a buy order or the minimum price you're willing to accept for a sell order. Be mindful of the current bid/ask spread in extended hours, as it can be wider.
Set "Time-in-Force" (TIF) - The Key for Extended Hours! This is the most important setting to enable extended hours trading on the app.
Look for a "Time-in-Force" or "TIF" option.
You will typically see options like "Day," "GTC" (Good-Til-Canceled), etc. For extended hours, you need to select the option that includes extended hours. E*TRADE usually uses terms like:
"EXT" or "Extended Hours": This often means the order is valid for the current pre-market or after-hours session.
"Day+" or "EXT Day": This typically means the order is valid for the current extended hours session and will roll over to the regular trading session if not filled, then expire at the end of the regular session.
"GTC+" or "EXT GTC": This means Good-Till-Canceled, and it will be active during extended hours sessions until filled or canceled.
Pay close attention to the specific options ETRADE presents on the app*. The exact terminology might vary slightly but will clearly indicate "Extended Hours."
Review Your Order: Double-check all the details: ticker, buy/sell, quantity, limit price, and especially the "Time-in-Force" set for extended hours.
Preview Order: Tap the "Preview Order" or similar button.
Submit Order: If everything looks correct and you understand the risks, submit your order.
Sub-heading: Monitoring Your Extended Hours Order
Once submitted, keep an eye on your order status. Due to lower liquidity and higher volatility, extended hours orders might take longer to fill or may not fill at all. You can typically find your active orders in the "Orders" section of the app.
Important Considerations for Extended Hours Trading
Liquidity: Expect lower trading volumes, which means fewer buyers and sellers. This can make it harder to get your order filled at your desired price.
Volatility: Prices can move more dramatically and unpredictably due to thinner trading.
Wider Bid-Ask Spreads: The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) can be significantly larger than during regular hours.
News Impact: Major news releases (like earnings) often happen outside regular hours, leading to immediate and sometimes exaggerated price reactions.
Limited Order Types: As noted, usually only limit orders are accepted.
No Price Protection: Unlike during regular hours, extended hours trading on Electronic Communication Networks (ECNs) may not offer "price protection," meaning your order isn't guaranteed to execute at the best available price across all venues.
Risk of Unfilled Orders: Due to lower liquidity, your limit order might not be filled even if the price briefly touches your limit.
10 Related FAQ Questions
How to access extended hours trading settings on the E*TRADE app?
You don't typically "access settings" to enable extended hours trading. Instead, once you have an E*TRADE brokerage account and have accepted the Extended Hours Trading Agreement (usually done online), the option to place extended hours orders becomes available when you are placing a trade by selecting the appropriate "Time-in-Force" (e.g., "EXT", "Day+", or "GTC+") for your limit order.
How to place a pre-market order on the E*TRADE app?
To place a pre-market order, go to the trade screen for the desired security, select "Buy" or "Sell," choose "Limit" as the order type, set your limit price, and then select a "Time-in-Force" option that includes extended hours, such as "EXT" or "Day+," which will allow your order to be eligible for the pre-market session.
How to place an after-hours order on the E*TRADE app?
Similar to pre-market, navigate to the trade screen, select "Buy" or "Sell," choose "Limit" order type, set your limit price, and for "Time-in-Force," select an option like "EXT" or "Day+" that covers after-hours trading.
How to tell if a stock is available for extended hours trading on E*TRADE?
Most U.S.-listed stocks and ETFs are generally available for extended hours trading on E*TRADE. However, liquidity can vary greatly. When you go to place an order, if the "Time-in-Force" options for extended hours are available for that specific security, it indicates it's eligible.
How to view extended hours quotes on the E*TRADE app?
When looking at a stock's quote on the E*TRADE app during extended hours, the displayed price will typically reflect the current extended hours trading activity. You might also see separate bid/ask quotes for the extended session, and sometimes charts will include extended hours data.
How to cancel an extended hours order on E*TRADE app?
To cancel an extended hours order, go to the "Orders" or "Open Orders" section within the E*TRADE app, locate your active extended hours order, and select the option to "Cancel."
How to understand the risks of extended hours trading on E*TRADE?
E*TRADE provides a detailed "Extended Hours Trading Agreement" that outlines risks such as lower liquidity, higher volatility, wider bid-ask spreads, and the risk of unexecuted orders. It's crucial to read and understand this document before engaging in extended hours trading.
How to ensure my extended hours trade executes?
There's no guarantee that an extended hours trade will execute, even if the price briefly touches your limit. To increase the chances, ensure you're using a limit order and consider a price that accounts for wider spreads and volatility. However, even then, execution is not guaranteed due to market conditions and liquidity.
How to check the status of my extended hours order on E*TRADE?
You can check the status of any pending or filled extended hours orders by navigating to the "Orders" or "Order Status" section within the E*TRADE app. It will show if the order is "Open," "Filled," "Partial Fill," or "Canceled."
How to get assistance with extended hours trading on E*TRADE?
If you have questions or encounter issues, the best way to get assistance is to contact E*TRADE customer support directly through their phone line or secure messaging within the app/website. They can provide personalized guidance regarding your account and specific trading scenarios.
