Hey there, aspiring night owl trader! Ever found yourself staring at the market charts after regular hours, wishing you could react to breaking news or global events right then and there? Well, you're in luck! Webull's overnight trading feature is designed to do just that, giving you the power to trade US stocks and ETFs almost around the clock.
But before you dive into the exciting world of 24/5 trading, it's crucial to understand how to enable it, what it entails, and the inherent risks. This comprehensive guide will walk you through everything you need to know.
Unleashing the Power of 24/5 Trading: Your Webull Overnight Guide
Webull has made significant strides in offering extended trading hours, including a dedicated overnight session powered by partners like Blue Ocean ATS. This means you're no longer limited to the traditional 9:30 AM to 4:00 PM ET window. Let's get you set up!
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| How To Enable Overnight Trading Webull |
Step 1: Are You Ready to Trade Beyond the Bell? (Self-Assessment)
Before we jump into the technical steps, let's make sure you're truly ready for overnight trading. This isn't just about clicking a button; it's about understanding the implications.
Do you understand the increased risks? Overnight trading often comes with lower liquidity and higher volatility. Are you comfortable with potentially wider bid-ask spreads and the possibility of orders not being filled at your desired price?
Are you prepared for continuous monitoring? News breaks at all hours. To truly capitalize on overnight trading, you need to be able to react to developments outside of regular market hours.
Have you reviewed your trading strategy? Does your current strategy account for the unique characteristics of extended and overnight sessions? What works during regular hours might not be as effective in a less liquid, more volatile environment.
Are you aware of the limited symbol availability? While Webull offers over 500 symbols for overnight trading, it's not every stock or ETF. Are the securities you're interested in eligible?
If you've considered these points and still feel confident, then let's move on!
Step 2: Activating Overnight Trading on Webull
Enabling overnight trading on Webull is a straightforward process, whether you're a new user or an existing one.
Sub-heading 2.1: For New Webull Clients
If you're just starting your Webull journey, you'll have the option to enable overnight trading during the account setup process.
Tip: Reading in short bursts can keep focus high.
Account Creation: Begin by downloading the Webull app or visiting their website to open a new brokerage account.
Preferred Trading Hours: During the application, you'll likely encounter a section asking for your preferred trading hours. Here, you'll have the choice to select either "Night trading only" or "All day trading".
Choosing "Night trading only" will restrict your order placements to the overnight session (typically 8:00 PM ET to 4:00 AM ET, Sunday through Thursday).
Choosing "All day trading" provides you with access to all trading sessions: pre-market, regular market, after-hours, and overnight. This is generally the more flexible option.
Client Agreement and Risk Disclosure: Regardless of your choice, you will be prompted to read and agree to the "Client Agreement and Risk Disclosure". Do not skip this step! This document outlines the specific risks associated with extended and overnight trading. Make sure you understand them thoroughly before proceeding.
Follow On-Screen Instructions: Complete any remaining on-screen instructions to finalize your account setup and activate overnight trading.
Sub-heading 2.2: For Existing Webull Clients
Already a Webull pro? No worries, enabling overnight trading is just a few taps away.
Update Your App: First and foremost, ensure you have the latest version of the Webull app installed on your mobile device. Outdated apps might not display all the necessary options.
Navigate to Trading Settings: Once your app is updated, during trading hours, you can typically find the option to adjust your preferred trading hours within the settings or profile section of your account. Look for something like "Trading Preferences," "Account Settings," or directly within the order ticket.
Select Trading Hours: Similar to new clients, you'll be given the option to choose between "Night trading only" or "All day trading". Select the option that best suits your trading style.
Read and Agree to Disclosures: Even if you're an existing client, Webull will likely require you to re-read and agree to the "Client Agreement and Risk Disclosure" specifically for extended and overnight trading. This is a crucial step to acknowledge the heightened risks involved.
Step 3: Placing an Overnight Trade
Once overnight trading is enabled on your Webull account, placing an order during these extended hours requires a specific approach.
Sub-heading 3.1: Identifying Eligible Securities
Look for the "24" Icon: Not all stocks and ETFs are available for 24-hour trading. Webull makes it easy to identify eligible securities by displaying a purple "24" icon on the stock profile page. You can also visit the "24 Hour Market" section within the Webull app to see a list of all available symbols.
Liquidity Considerations: Even if a security is available, keep in mind that liquidity can be significantly lower during overnight sessions. This means it might be harder to buy or sell at your desired price, and bid-ask spreads can be wider.
Sub-heading 3.2: Setting Up Your Order Ticket
This is where the magic happens! When placing your trade, you need to specify that it's an extended hours order.
Select the Symbol: Go to the stock or ETF you wish to trade.
Tap "Trade": Initiate an order as you normally would.
Choose "Limit Order": During extended and overnight hours, only limit orders are accepted. This is a critical point. Market orders are not permitted due to the potential for extreme price fluctuations in low-liquidity environments.
A limit order allows you to set the maximum price you're willing to pay when buying or the minimum price you're willing to accept when selling.
Set Your Limit Price and Quantity: Carefully input your desired buy or sell price and the number of shares.
Crucial Step: Select "Trading Hours": Look for a dropdown menu or option labeled "Trading Hours" within the order ticket.
Here, you'll select "Include Ext." (for pre-market/after-hours) or "24 Hour Market" (for overnight trading).
Note on "Time-in-Force":
If you selected "Night trading only" as your preferred trading hours and choose "Day" as your Time-in-Force, your order will only be placed during overnight hours.
If you selected "All day trading" as your preferred trading hours, you can choose "Good-Til-Canceled" (GTC) to have your order active across all sessions, or "Day" if you only want it active for the current overnight session (until the end of the next trading day's extended hours).
Confirm Your Order: Review all the details of your order (symbol, limit price, quantity, trading hours, time-in-force) before confirming.
Step 4: Understanding Overnight Trading Hours on Webull
Knowing the specific timings is crucial for effective overnight trading.
Tip: Remember, the small details add value.
Overnight Session: The dedicated overnight trading session generally runs from 8:00 PM ET to 4:00 AM ET, Sunday through Thursday.
Pre-Market Session: This session typically runs from 4:00 AM ET to 9:30 AM ET (before regular market opens).
Regular Trading Hours: The standard market session is from 9:30 AM ET to 4:00 PM ET.
After-Hours Session: This session typically runs from 4:00 PM ET to 8:00 PM ET.
It's important to note that trades executed between 8:00 PM ET and 12:00 AM ET will carry the trade date of the following trade day.
Step 5: Essential Considerations and Risks
While overnight trading offers significant flexibility, it's not without its challenges. Being aware of these risks is paramount.
Sub-heading 5.1: Lower Liquidity
What it means: Fewer participants are trading during extended hours. This means there are fewer buyers and sellers, making it harder to find a counterparty for your trade.
Impact: Your order might only be partially executed, or not executed at all. You might also experience wider bid-ask spreads, meaning a larger difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept.
Sub-heading 5.2: Higher Volatility
What it means: Due to lower liquidity and the potential for news announcements, prices can fluctuate much more dramatically during extended hours.
Impact: You might receive an inferior price to what you might receive during regular trading hours. Rapid price swings can also make it difficult to enter or exit positions effectively.
Sub-heading 5.3: Unlinked Markets and Inferior Pricing
What it means: During regular hours, the SEC's National Best Bid and Offer (NBBO) rule ensures you get the best available price across all exchanges. This rule does not apply during extended hours.
Impact: The price displayed on one extended hours trading system might be different and potentially worse than on another concurrently operating system. You might get a less favorable price than you would during regular hours.
Sub-heading 5.4: News Announcements
What it means: Companies often release earnings reports or other significant news after regular trading hours.
Impact: These announcements, combined with lower liquidity and higher volatility, can cause an exaggerated and unsustainable effect on a security's price during extended hours.
Sub-heading 5.5: Limited Order Types
Tip: Slow down at important lists or bullet points.
What it means: As mentioned, only limit orders are accepted during extended hours.
Impact: You cannot use market orders, which guarantee execution but not price. This means your order might not be filled if your limit price isn't met.
Sub-heading 5.6: Not All Securities Available
What it means: While Webull offers a good selection, options (with limited exceptions), warrants, rights, OTC stocks, and fractional shares are generally not available for extended or overnight trading.
Impact: If your strategy relies on these instruments, you'll be limited to regular trading hours for those specific assets.
Sub-heading 5.7: Cancellation of Unfilled Orders
What it means: If your order isn't filled before the next regular trading session begins (or by the specified Time-in-Force), it will be canceled.
Impact: You'll need to re-enter any unfilled orders if you still wish to execute them.
Step 6: Leveraging Webull's Features for Overnight Trading
Webull offers several features that can be beneficial when engaging in overnight trading.
Advanced Charting Tools: Utilize Webull's charting tools with real-time quotes to analyze price movements even outside of regular hours. You can even enable extended hours quotes on the chart itself by going to the Chart Toolbox -> Settings -> Including Extended Hours.
Level 2 Quotes: While liquidity is lower, Level 2 quotes can provide deeper insight into the immediate supply and demand at different price points, which can be even more critical in less liquid environments.
Community and News Feeds: Stay updated with breaking news and community discussions that might influence overnight price action. Reacting quickly to news is a key advantage of overnight trading.
Paper Trading: If you're new to overnight trading, consider using Webull's paper trading feature to practice your strategies without risking real capital. This is an excellent way to get a feel for the unique dynamics of extended hours.
Related FAQ Questions (How to...)
Here are 10 common questions related to enabling and utilizing overnight trading on Webull, with quick answers:
How to enable extended hours trading on Webull if I'm an existing client?
Update your Webull app to the latest version, then go to your account settings or directly to the order ticket and look for "Trading Hours" to select "All day trading" or "Night trading only." You'll need to agree to the relevant disclosures.
How to place a trade during Webull's overnight hours?
QuickTip: Reading carefully once is better than rushing twice.
Select the stock or ETF, tap "Trade," choose "Limit Order," set your price and quantity, and crucially, select "24 Hour Market" under "Trading Hours" before confirming your order.
How to identify stocks available for overnight trading on Webull?
Look for the purple "24" icon next to the stock symbol on its profile page, or browse the "24 Hour Market" section within the Webull app.
How to understand the risks of overnight trading on Webull?
Be aware of lower liquidity, higher volatility, wider bid-ask spreads, the absence of NBBO protection, and the potential for exaggerated reactions to news due to fewer participants.
How to cancel an overnight trade on Webull if it's not filled?
Unfilled orders placed during overnight hours with a "Day" Time-in-Force will automatically be canceled after the extended trading hours end (typically 8:00 PM ET the next day). You can also manually cancel pending orders.
How to view extended hours quotes on Webull's charts?
On the chart of a desired symbol, tap the "Chart Toolbox" (often a clover icon), then go to "Settings" and toggle on "Including Extended Hours."
How to know the exact timings for Webull's overnight trading?
The overnight session runs from 8:00 PM ET to 4:00 AM ET, Sunday through Thursday. This is distinct from pre-market (4:00 AM - 9:30 AM ET) and after-hours (4:00 PM - 8:00 PM ET).
How to use "Good-Til-Canceled" (GTC) with overnight trading on Webull?
If you've enabled "All day trading" for your preferred hours, selecting "Good-Til-Canceled" as your Time-in-Force for a limit order will keep your order active across all trading sessions (regular, pre-market, after-hours, and overnight) until it's filled or you cancel it.
How to practice overnight trading on Webull without real money?
Utilize Webull's paper trading feature, which allows you to simulate trades with real-time market data without risking any capital.
How to ensure I'm getting the best price during Webull's overnight trading?
Given the unlinked markets and lower liquidity, there's no guarantee of the "best" price during overnight trading. Always use limit orders to control your entry and exit prices and be mindful of wider bid-ask spreads.
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