As a diligent investor, you understand that the stock market isn't just a 9:30 AM to 4:00 PM ET affair. Major news, earnings reports, and global events often break after the closing bell, creating significant price movements that you might want to react to immediately. This is where after-hours trading comes in, and Charles Schwab offers robust options to empower you.
However, trading outside regular market hours comes with its own set of nuances and risks. This comprehensive guide will walk you through the process of selling stock after hours on Charles Schwab, providing a step-by-step approach and answering your most pressing questions.
Understanding After-Hours Trading on Charles Schwab
Before we dive into the "how," let's quickly clarify what after-hours trading entails and what Charles Schwab's specific provisions are:
- Regular Market Hours: The standard trading session for most U.S. stock exchanges (like NYSE and Nasdaq) is 9:30 AM to 4:00 PM Eastern Time (ET), Monday through Friday, excluding market holidays.
- Extended Hours Trading: This term encompasses both pre-market and after-hours sessions.
- Pre-Market Session: Generally, 7:00 AM to 9:25 AM ET. Orders can often be placed as early as 8:05 PM ET the previous trading day.
- After-Hours Session: Generally, 4:05 PM to 8:00 PM ET. Orders can be placed and are eligible for execution during this time.
- 24/5 Trading on thinkorswim®: For those using the thinkorswim platform (which is now part of Charles Schwab), you might have access to an even more extensive trading window, often from 8:00 PM ET Sunday through 8:00 PM ET Friday for over 800 popular stocks and ETFs. This offers continuous execution through "Extended + Overnight" (EXTO) orders.
Important Note: Extended hours trading typically only supports limit orders. Market orders are generally not accepted due to the increased volatility and lower liquidity, which could lead to unexpected execution prices.
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| How To Sell Stock After Hours Charles Schwab |
Your Step-by-Step Guide to Selling Stock After Hours on Charles Schwab
Ready to take control of your investments beyond the conventional trading day? Let's get started!
Step 1: Are You Prepared? Know the Risks!
Before you even think about placing an after-hours trade, pause and ask yourself: Am I fully aware of the unique risks involved? This isn't just a formality; it's a critical first step for any savvy investor.
QuickTip: Treat each section as a mini-guide.
After-hours trading can be an excellent tool, but it's not without its downsides. Key considerations include:
- Lower Liquidity: Fewer buyers and sellers means it can be harder to get your order filled at your desired price. This can lead to 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). - Higher Volatility: With less liquidity, a single large order can have a more significant impact on the stock price, leading to rapid and unpredictable price swings.
- Price Uncertainty: The quotes you see after hours might not reflect all available prices across different trading venues. The price you see might differ from the price at which your order is actually executed.
- News Impact: While you can react to news, remember that news during extended hours can cause dramatic and swift price movements, making quick decision-making crucial and potentially risky.
- Limited Order Types: As mentioned, typically only limit orders are accepted, which means your order will only execute if the stock reaches your specified price or better.
Make sure you're comfortable with these potential pitfalls before proceeding. If you're new to this, consider starting with smaller positions to gain experience.
Step 2: Accessing Your Charles Schwab Account
The journey begins by logging into your Charles Schwab account. You have a few primary avenues:
- Schwab.com (Web Platform): This is the most common and robust option for desktop users.
- Schwab Mobile App: Convenient for trading on the go from your smartphone or tablet.
- thinkorswim® Platform (Desktop or Mobile): If you're an active trader, this platform offers advanced charting, analysis tools, and often more extensive extended-hours trading capabilities, including 24/5 trading for eligible securities.
Choose the platform that best suits your needs and comfort level. The general process remains similar across platforms, but the exact button placements might vary slightly. For this guide, we'll primarily focus on Schwab.com, with notes for thinkorswim where applicable.
Step 3: Navigating to the Trade Ticket
Once logged in, you need to find the trading interface.
Tip: Focus on sections most relevant to you.
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On Schwab.com:
- Look for a "Trade" or "Trading" tab in the main navigation menu.
- From the dropdown, select "Stocks & ETFs" or "All-In-One Trade Ticket." The "All-In-One Trade Ticket" is often the most straightforward option as it consolidates various asset types.
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On Schwab Mobile App:
- Tap the "Trade" icon, usually found at the bottom or top of the screen.
- Select "Stocks" or "Trade Stocks & ETFs."
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On thinkorswim®:
- Navigate to the "Trade" tab.
- You'll typically see an order entry module directly on the trading screen.
Step 4: Entering Your Sell Order Details
This is where you specify what you want to sell.
- Select "Sell": Most trade tickets will have prominent "Buy" and "Sell" buttons or options. Make sure you select "Sell" to indicate your intention to divest shares.
- Enter Symbol: Type in the ticker symbol (e.g., AAPL for Apple Inc., MSFT for Microsoft Corp.) of the stock you wish to sell.
- Enter Quantity: Specify the number of shares you want to sell.
- **Select Order Type: **This is crucial for after-hours trading.
- Always Choose "Limit": As previously highlighted, after-hours trading almost exclusively requires limit orders. A limit order allows you to set the minimum price you are willing to accept for your shares. If the stock's price doesn't reach your limit, your order won't execute. This protects you from selling at an unexpectedly low price due to low liquidity.
- Do NOT choose "Market" order. A market order instructs your broker to sell at the best available price immediately, which in illiquid after-hours markets could result in a much lower price than you anticipated.
- Set Your Limit Price: Enter the specific price per share at which you are willing to sell. Be realistic but firm. If you set it too high, your order might not fill. If you set it too low, you might miss out on a better price.
Step 5: Specifying Extended Hours "Time in Force"
This is the most critical step for ensuring your order is eligible for after-hours execution. The "Time in Force" (TIF) instructs Schwab how long your order should remain active.
On Schwab.com or Schwab Mobile, you will typically find a "Timing" or "Time in Force" dropdown menu. Here are the relevant options for after-hours trading:
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- Extended-hours p.m. (After-hours Day order): This option makes your order eligible for execution only during the current after-hours session (typically 4:05 PM to 8:00 PM ET). If not filled by the end of this session, the order will be canceled.
- Day + Extended Hours: This order is active during both the regular trading session and the current day's extended hours sessions (pre-market and after-hours, typically 7:00 AM to 8:00 PM ET). If you place this during regular hours, it will carry over.
- GTC + Extended Hours (Good-Til-Canceled + Extended Hours): This is ideal if you want your order to remain active for an extended period, up to 180 calendar days, and participate in all regular and extended trading sessions (pre-market and after-hours) until it's filled or canceled.
For thinkorswim® users, you'll see specific "Time in Force" options related to extended trading, such as:
- EXT PM: For the immediate after-hours session.
- EXT 13h: For a 13-hour continuous session (typically 7:00 AM to 8:00 PM ET).
- EXTO (Extended + Overnight): For 24/5 continuous trading, expiring at 8:00 PM ET each market day. This is the most comprehensive extended-hours option on thinkorswim.
- GTC+EXTO: A Good-Til-Canceled order that remains active 24/5.
Choose the "Time in Force" option that aligns with your trading strategy and how long you want your order to be active during non-regular market hours.
QuickTip: A quick skim can reveal the main idea fast.
Step 6: Reviewing and Placing Your Order
Never skip this step! A quick review can prevent costly mistakes.
- Review Order Details: Carefully check all the information:
- Action: Sell
- Symbol: Is it the correct stock?
- Quantity: Is the number of shares accurate?
- Order Type: Is it Limit?
- Limit Price: Is this the price you intend to sell at?
- Time in Force: Is it set correctly for Extended Hours (e.g., "Extended-hours p.m.," "Day + Extended Hours," "GTC + Extended Hours," or EXTO on thinkorswim)?
- Acknowledge Risks: Charles Schwab will likely present you with a disclosure or warning about the risks associated with extended hours trading. Read it thoroughly and acknowledge your understanding. This is part of being a responsible trader.
- Confirm and Place Order: Once you are completely satisfied and understand the risks, select "Review Order" (or similar), and then "Place Order" or "Send."
Step 7: Monitoring Your Order
After placing your order, it's not a guarantee that it will execute.
- Check Order Status: Go to the "Order Status" or "Account Details" section of your Schwab platform. Here, you can see if your order is "Open," "Pending," "Filled," or "Canceled."
- Market Conditions: Keep an eye on the stock's price movement and the bid-ask spread during the after-hours session. If the price doesn't hit your limit or liquidity is too low, your order may not fill.
- Unexecuted Orders: Remember that unexecuted "Extended-hours p.m." or "Day + Extended Hours" orders will typically be canceled at the end of the specified extended session. If you used a "GTC + Extended Hours" order, it will remain active for future extended sessions until filled or manually canceled.
Important Considerations for After-Hours Trading
- Eligible Securities: While most listed and NASDAQ securities are generally eligible for extended hours trading, not all stocks will have sufficient trading interest or liquidity.
- Mutual Funds, Bonds, and Most Options: These generally do not trade in extended hours.
- Stop Orders: Stop orders (e.g., Stop-Limit orders) are typically not eligible for execution during extended-hours sessions. You'll need to use a standard limit order.
- Customer Support: Charles Schwab offers 24/7 client support. If you encounter any issues or have questions during the after-hours session, don't hesitate to contact their trading specialists.
10 Related FAQ Questions
Here are 10 frequently asked questions about selling stock after hours on Charles Schwab, with quick answers:
How to know if a stock trades after hours on Charles Schwab?
You can usually check a stock's eligibility by attempting to place an extended-hours trade or by looking for an "EXTO" or "24" icon next to the security on the thinkorswim platform, which indicates 24/5 trading availability for many stocks.
How to cancel an after-hours order on Charles Schwab?
You can attempt to cancel an open extended-hours order through the "Order Status" section of your Schwab account. As long as the order status is "Open" and not yet filled, you should be able to cancel it.
Tip: The middle often holds the main point.
How to interpret quotes during after-hours trading on Charles Schwab?
After-hours quotes might not be consolidated across all trading venues and may only reflect the prices available through the specific market center Schwab routes your order to. Be aware that these quotes can differ from the consolidated quotes seen during regular hours.
How to set a good limit price for after-hours selling?
Consider recent regular-hours closing prices, any breaking news, and the current bid-ask spread in the after-hours session. Set a price that you are comfortable with, but also one that is realistic to get filled given the current liquidity.
How to react to news events during after-hours trading on Charles Schwab?
If news breaks, quickly assess its potential impact on your stock. You can then log into your Schwab platform, place a limit order to sell, and select the appropriate extended-hours "Time in Force" option to react.
How to avoid common mistakes in after-hours trading on Charles Schwab?
Always use limit orders, understand the risks of lower liquidity and higher volatility, carefully review your order before placing it, and monitor your order status regularly. Avoid impulsive decisions based on exaggerated price swings.
How to compare pre-market vs. after-hours trading on Charles Schwab?
Both are part of extended hours trading and carry similar risks. Pre-market generally runs from 7:00 AM to 9:25 AM ET, while after-hours is from 4:05 PM to 8:00 PM ET. The thinkorswim platform also offers continuous 24/5 trading for many securities.
How to access 24/5 trading on Charles Schwab?
24/5 trading (Extended + Overnight, or EXTO orders) is exclusively available on the thinkorswim platform for over 800 popular stocks and ETFs, including those in the S&P 500 and Nasdaq-100.
How to understand the "Time in Force" options for extended hours on Charles Schwab?
"Day + Extended Hours" and "Extended-hours p.m." are generally for a single day's extended sessions. "GTC + Extended Hours" (or EXTO/GTC+EXTO on thinkorswim) will keep your order active for multiple extended sessions until filled or canceled (up to 180 days).
How to get help with after-hours trading on Charles Schwab?
Charles Schwab provides 24/7 client support. You can contact them by phone or chat through Schwab.com or the thinkorswim platforms if you need assistance with placing or managing extended-hours trades.
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