Ready to unlock more trading opportunities with ETRADE? Trading outside of regular market hours, often called extended hours trading, can be a game-changer for many investors. Whether you want to react to breaking news, capitalize on earnings reports, or simply fit trading into your busy schedule, understanding and signing the Extended Hours Disclosure with ETRADE is your first crucial step.
Let's dive in and get you set up for extended hours trading!
Navigating the World of Extended Hours Trading on E*TRADE: Your Step-by-Step Guide
Extended hours trading on ETRADE allows you to place trades before the market officially opens (pre-market) and after it closes (after-hours). This can provide significant advantages, but it also comes with its own set of risks. ETRADE, like other reputable brokers, requires you to acknowledge and understand these risks by signing an Extended Hours Trading Disclosure.
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| How To Sign Extended Hours Disclosure Etrade |
Step 1: Are You Ready to Extend Your Trading Horizons?
Before we even log in, ask yourself why you want to trade during extended hours. Is it to react to overnight news from Asia or Europe? To jump on an earnings announcement before the market opens or after it closes? Or simply to have more flexibility with your trading schedule? Understanding your motivations will help you appreciate the benefits and mitigate the risks we'll discuss later.
If your answer is a resounding "Yes!" to any of these, then let's proceed to the practical steps of signing that disclosure.
Step 2: Accessing Your E*TRADE Account
The first logical step is to get into your E*TRADE account.
QuickTip: Skip distractions — focus on the words.
Sub-heading: Logging In
Open your web browser and navigate to the official E*TRADE website (etrade.com).
Locate the "Log On" or "Sign In" button, usually found in the top right corner of the homepage.
Enter your User ID and Password accurately.
Click "Log On." If you have two-factor authentication enabled (which is highly recommended for security!), complete that step as well.
Step 3: Locating the Extended Hours Disclosure
Once you're logged into your account, you'll need to find the specific section for extended hours trading. E*TRADE's platform is user-friendly, but sometimes these agreements can be nestled within a few menus.
Sub-heading: Navigating to Account Settings or Trading Preferences
Look for a menu option related to your Account, Settings, Profile, or Preferences. This is often found by clicking on your name or a user icon in the top right corner.
Within these options, search for sections like "Trading," "Agreements & Disclosures," "Services," or "Features." The exact wording might vary slightly.
Tip: If you're having trouble locating it, try using the search bar within E*TRADE's platform (if available) and type "Extended Hours" or "After Hours Trading."
Sub-heading: Finding the Specific Agreement
Once you've reached the relevant section, you should see a list of agreements, disclosures, and services. Look specifically for something titled "Extended Hours Trading Agreement," "Extended Hours Trading Disclosure," or similar.
It's important to not skip this step and directly look for the agreement. This ensures you're reviewing the correct document provided by E*TRADE.
Step 4: Reviewing the Disclosure – Read Carefully!
This is perhaps the most critical step. The Extended Hours Trading Disclosure isn't just a formality; it's designed to inform you of the unique risks associated with trading outside regular market hours.
Sub-heading: Understanding the Risks
E*TRADE, and other brokers, will highlight several key risks. Pay close attention to:
Risk of Lower Liquidity: During extended hours, fewer buyers and sellers are typically active. This can make it harder to execute your orders at your desired price, or even execute them at all.
Risk of Higher Volatility: With lower liquidity, prices can fluctuate more dramatically and unpredictably. A small number of trades can have a significant impact on a stock's price.
Risk of Wider Spreads: The "spread" is the difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask). In extended hours, this spread can be much wider, meaning you might buy at a higher price or sell at a lower price than you'd expect during regular hours.
Risk of Changing Prices: The prices you see during extended hours may not reflect the prices at the close of the regular session or the opening of the next day.
Risk of News Announcements: Many companies release important news or earnings reports outside regular market hours. These announcements can lead to rapid and significant price movements during extended sessions.
Limit Orders Only: E*TRADE generally only accepts limit orders for extended hours trading. Market orders are typically not accepted due to the inherent risks. You must specify the exact price at which you are willing to buy or sell.
Day Orders Only: Most extended hours orders are "Day Orders," meaning they will expire if not executed by the end of that specific extended hours session. Good-Till-Canceled (GTC) orders are usually not supported.
Sub-heading: Considering the Implications
As you read through each point, consider how these risks might impact your trading strategy. For example, if you typically use market orders, you'll need to adapt to using limit orders. If you rely on high liquidity for quick entries and exits, extended hours might not always be suitable.
Step 5: Acknowledging and Signing the Disclosure
Once you've thoroughly reviewed and understood the disclosure, you'll need to formally acknowledge it.
Sub-heading: Electronic Signature
Look for a checkbox that states you have read and understood the terms.
There will likely be a button to "Agree," "Accept," or "Sign." This typically acts as your electronic signature.
Double-check that you have clicked all necessary checkboxes and buttons to complete the process.
E*TRADE may send a confirmation email to your registered email address once the disclosure is successfully signed. Keep this for your records.
Step 6: Verifying Activation of Extended Hours Trading
Tip: Focus on clarity, not speed.
After signing the disclosure, it's a good idea to confirm that extended hours trading has been enabled on your account.
Sub-heading: Attempting an Extended Hours Order (Simulated)
While you don't have to place a real trade, you can often go through the steps of creating an order for a security and see if the "Extended Hours" or "After-Hours" option is now available in the order type or time-in-force settings.
Look for specific time-in-force options like "EXT" (Extended) or "EXTO" (Extended Overnight) when placing an order.
Confirm the trading hours: E*TRADE's extended hours are generally:
Pre-Market: 7:00 a.m. to 9:25 a.m. ET
After-Hours: 4:05 p.m. to 8:00 p.m. ET
They also offer an Extended Hours Overnight Session (Sunday through Thursday, 8:00 p.m. to 7:00 a.m. ET) for certain ETFs.
If you're unsure, or if the option isn't appearing, you can always contact E*TRADE customer service for confirmation.
10 Related FAQ Questions
How to enable extended hours trading on E*TRADE?
You enable extended hours trading by logging into your E*TRADE account, navigating to the "Agreements & Disclosures" or "Trading" section, and electronically signing the "Extended Hours Trading Agreement" after reviewing the associated risks.
How to place a trade during extended hours on E*TRADE?
Once enabled, when placing a trade on E*TRADE, select a limit order and choose an extended hours time-in-force option, such as "EXT" or "EXTO," which signifies it's eligible for pre-market or after-hours execution.
How to find the extended hours trading disclosure on E*TRADE?
Tip: Reread if it feels confusing.
Log in to your E*TRADE account, go to "Account" or "Settings," then look for "Agreements & Disclosures" or "Trading Agreements." The "Extended Hours Trading Agreement" should be listed there.
How to understand the risks of extended hours trading on E*TRADE?
The E*TRADE Extended Hours Trading Disclosure details risks like lower liquidity, higher volatility, wider bid-ask spreads, and the impact of news announcements. Carefully read this document before signing to understand these potential pitfalls.
How to cancel an extended hours order on E*TRADE?
Extended hours orders on E*TRADE can typically be cancelled like regular orders through your order status or portfolio section on the platform, as long as they haven't been executed. Remember, if they are "Day Orders," they will automatically cancel at the end of the extended session if not filled.
How to determine if a stock is eligible for extended hours trading on E*TRADE?
Generally, most listed stocks and ETFs are available for extended hours trading on E*TRADE. When you go to place an order, if the extended hours time-in-force options are available for that specific security, it indicates eligibility.
Tip: Compare what you read here with other sources.
How to check the current extended hours for E*TRADE?
E*TRADE's extended hours are generally Pre-Market (7:00 a.m. - 9:25 a.m. ET), After-Hours (4:05 p.m. - 8:00 p.m. ET), and an Extended Hours Overnight Session (Sunday-Thursday, 8:00 p.m. - 7:00 a.m. ET) for certain ETFs. These times can be found in the Extended Hours Trading Agreement on their website.
How to contact E*TRADE customer service for extended hours trading questions?
You can contact E*TRADE customer service by calling their main support line, often found in the "Contact Us" section of their website (typically 800-387-2331). They can assist with any questions about extended hours trading or the disclosure.
How to view extended hours quotes on E*TRADE?
E*TRADE's trading platforms (web and mobile) typically show real-time quotes, and when extended hours trading is active, the displayed prices will reflect the extended hours market activity. Ensure your data settings are set to real-time.
How to improve my chances of order execution during E*TRADE extended hours?
Since only limit orders are accepted, your best chance of execution is to set a realistic limit price. Consider the current bid/ask spread and be patient, as lower liquidity can mean orders take longer to fill, or may not fill at all if your price isn't competitive.
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