Mastering After-Hours Trading on Webull: Your Comprehensive Guide
Have you ever found yourself in a situation where major news breaks after the stock market closes, and you're itching to react, but the trading floor is silent? Or perhaps you're a busy professional whose schedule doesn't align with regular market hours? If so, then after-hours trading on Webull might just be your golden ticket! This comprehensive guide will walk you through everything you need to know, from understanding the basics to executing your first trade.
Ready to seize opportunities even when the market is "closed"? Let's dive in!
Understanding After-Hours Trading on Webull
Before we get into the "how-to," it's crucial to understand what after-hours trading truly is.
After-hours trading, also known as extended-hours trading, refers to the buying and selling of securities outside of the traditional 9:30 AM to 4:00 PM Eastern Time (ET) regular market session. Webull offers access to both pre-market and after-market sessions, significantly extending your trading window.
Webull's Extended Trading Hours for US Stocks (Eastern Time):
Pre-market: 4:00 AM ET - 9:30 AM ET
After-hours: 4:00 PM ET - 8:00 PM ET
Overnight (for select symbols): 8:00 PM ET - 4:00 AM ET (Sunday through Thursday)
These extended hours provide traders with the flexibility to react to news, earnings reports, or global market movements that occur outside of standard market hours.
Step 1: Prepare for After-Hours Trading – Do Your Homework!
This isn't your typical 9-to-5 market session, so don't treat it like one! Engaging in after-hours trading requires a different mindset and a thorough understanding of the unique risks involved.
Sub-heading 1.1: Acknowledge the Risks
It's absolutely critical to be aware of the inherent risks before you even think about placing an after-hours trade. These risks are amplified compared to regular market hours:
Lower Liquidity: Fewer participants mean fewer buyers and sellers. This can lead to your orders taking longer to fill, or not filling at all. Imagine trying to sell a unique collectible at 3 AM – not many interested buyers, right? The stock market behaves similarly after hours.
Higher Volatility: Due to lower liquidity, even small orders can have a magnified impact on a stock's price, leading to sudden and significant price swings. News announcements after regular hours can cause dramatic price movements that may not reflect the opening price the next day.
Wider Bid-Ask 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, these spreads can be much wider, meaning you might buy at a higher price or sell at a lower price than you would during regular hours.
No "Best Execution" Guarantee: During regular hours, exchanges generally adhere to Regulation NMS (National Market System), which aims to ensure orders are executed at the best available price across all exchanges. This rule does not apply during extended hours. Your order might be sent to an exchange or market maker that doesn't offer the absolute best price you see in your market data.
Limited Order Types: Webull, like most brokers, only allows limit orders during extended hours. Market orders are generally not permitted due to the volatility and lack of liquidity, which could lead to unfavorable fills.
Sub-heading 1.2: Research Your Target Stocks
Given the risks, it's paramount to thoroughly research any stock you plan to trade after hours. Look for:
Recent News and Earnings: Is there a catalyst driving the after-hours movement? Unexpected news or earnings releases are common drivers.
Trading Volume: Even in after-hours, some stocks will have more volume than others. Higher volume can indicate better liquidity, though it's still generally lower than regular hours.
Historical After-Hours Performance: Does the stock typically have significant after-hours movements? This isn't a guarantee of future performance, but it can provide context.
Step 2: Ensure Your Webull Account is Ready
Your Webull account needs to be set up correctly to access extended-hours trading. For most users, it's enabled by default for US stocks, but it's good to confirm.
Sub-heading 2.1: Verify Extended Hours Trading Capability
Webull generally provides access to extended hours trading for eligible securities. You usually don't need to "enable" it in a separate setting. The option appears within the order ticket when you place a trade.
Sub-heading 2.2: Understand Account Types and Eligibility
Most individual brokerage accounts on Webull will have access to extended hours trading for US stocks and ETFs. However, certain assets like options (with some exceptions), warrants, rights, OTC stocks, and fractional shares may not be available for extended-hours trading.
Step 3: Placing an After-Hours Trade on Webull (Desktop & Mobile)
Now for the exciting part – placing your trade! The process is straightforward once you know where to look. Remember, only limit orders are accepted for extended hours.
Sub-heading 3.1: On the Webull Mobile App
Open the Webull App: Launch the Webull application on your smartphone.
Search for Your Stock: Use the search bar to find the symbol of the stock you wish to trade.
Tap "Trade": Once on the stock's detail page, tap the "Trade" button, usually located at the bottom of the screen.
Select "Buy" or "Sell": Choose whether you want to buy or sell the stock.
Choose "Limit Order": This is crucial! Under "Order Type," ensure "Limit" is selected. Market orders are not allowed for extended hours.
Set Your Limit Price: Enter the specific price at which you are willing to buy or sell the stock. Remember the wider bid-ask spreads – you might need to adjust your limit price to get your order filled.
Specify Quantity: Enter the number of shares you wish to trade.
Enable Extended Hours: This is the key step! Look for a "Trading Hours" or "Time in Force" option. Tap on it and select "Include Extended Hours" or "EXT". On some versions, it might simply be a toggle or checkbox.
Review and Place Order: Double-check all your order details (stock, quantity, limit price, and extended hours selected). Once satisfied, tap "Place Order" or "Buy/Sell."
Sub-heading 3.2: On the Webull Desktop Platform
Launch Webull Desktop: Open the Webull desktop application or access the web platform.
Locate the Trade Widget: Navigate to the stock you want to trade. Within the "Trade" widget (or order entry panel), you'll see the various order settings.
Select "Buy" or "Sell": Choose your desired action.
Choose "Limit Order": Make sure the "Order Type" is set to "Limit."
Set Your Limit Price and Quantity: Input your desired price and the number of shares.
Enable Extended Hours: Find the "Trading Hours" dropdown menu. Click on it and select "Include Extended Hours."
Review and Place Order: Confirm all the details and then click "Place Order."
Step 4: Monitoring and Managing Your After-Hours Trades
Placing the order is only half the battle. Monitoring your positions and understanding how to manage them is equally important.
Sub-heading 4.1: Track Your Order Status
Once you've placed an extended-hours order, you can track its status in the "Orders" tab of your Webull platform.
"Pending": Your order has been submitted but not yet filled.
"Partially Filled": Some of your shares have been traded, but not all.
"Filled": Your entire order has been executed.
"Canceled": Your order was canceled before it could be filled.
"Expired": If your order was "Day" valid, it would expire if not filled by the end of the extended-hours session.
Sub-heading 4.2: Modifying or Canceling Orders
You can modify or cancel pending after-hours orders just like regular orders. However, be aware that with fast-moving prices and low liquidity, a modification or cancellation might not execute instantly.
Sub-heading 4.3: Understanding "Time in Force"
When placing a limit order, you'll often see "Time in Force" options. For after-hours trading, the most common is "Day" or "Good-Til-Cancelled (GTC)".
Day: If your order is not filled by the end of the extended-hours session, it will be automatically canceled.
GTC (Good-Til-Cancelled): Your order will remain active until it's filled or you manually cancel it. Be cautious with GTC orders during extended hours due to potential overnight price fluctuations.
Step 5: Post-Trade Analysis and Learning
Every trade, whether successful or not, is a learning opportunity.
Sub-heading 5.1: Review Your Execution
Did your limit order get filled at the price you expected? Did the wider spread impact your profitability? Analyze the execution details to understand how market conditions during extended hours affected your trade.
Sub-heading 5.2: Reflect on Your Strategy
Why did you place the trade after hours? Did the news impact the stock as you anticipated? What could you have done differently? Continuous self-assessment will refine your after-hours trading approach.
10 Related FAQ Questions
Here are some frequently asked questions about after-hours trading on Webull:
How to check Webull's current extended trading hours? You can typically find Webull's official extended trading hours on their "Help" or "FAQ" section within the app or on their website. Generally, for US stocks, it's 4 AM - 9:30 AM ET (pre-market) and 4 PM - 8 PM ET (after-hours), with overnight trading for select symbols from 8 PM - 4 AM ET.
How to enable or disable extended hours quotes on the chart? On the Webull mobile app, go to the stock's chart, tap the "Chart Toolbox" (often a clover icon), then select "Settings" and look for "Including Extended Hours." On desktop, there's usually an "Ext." button at the bottom right of the chart.
How to know if a stock is eligible for after-hours trading on Webull? Most US-listed stocks and ETFs are eligible. However, some securities like options (with exceptions), warrants, rights, OTC stocks, and fractional shares may not be. When you go to place an order, if the "Include Extended Hours" option is available, the stock is likely eligible.
How to view Level 2 market data during after-hours on Webull? Webull often provides Level 1 market data (bid/ask prices) for free. To access Level 2 (depth of market), which shows more bid/ask orders, you might need to subscribe to a premium data package through Webull.
How to set a stop-loss order for after-hours trading on Webull? Important: Webull generally only allows limit orders during extended hours. You cannot place stop-loss or stop-limit orders that activate during extended hours. If you want a stop-loss, it would need to be active during regular market hours, or you'd have to manually monitor your position after hours.
How to cancel a pending after-hours order on Webull? Go to your "Orders" tab (usually found at the bottom of the app or in the trading interface on desktop), find the pending order, and select the option to "Cancel."
How to understand the commission fees for after-hours trading on Webull? Webull generally offers commission-free trading for US stocks and ETFs during both regular and extended hours. However, regulatory transaction fees and other small fees still apply. For overnight trading (8 PM - 4 AM ET), Webull may charge a commission, so always check their pricing page for the latest details.
How to interpret low liquidity warnings in after-hours trading? Low liquidity means there are fewer buyers and sellers, making it harder to get your desired price. This can lead to wider bid-ask spreads and orders taking longer to fill. Always be aware that price movements can be exaggerated with low liquidity.
How to manage risk effectively in after-hours trading on Webull? Only use limit orders, understand the stock's fundamentals and recent news, avoid overly large positions, and be prepared for higher volatility and wider spreads. Never risk more than you can afford to lose.
How to use paper trading to practice after-hours trading on Webull? Webull offers a paper trading feature that allows you to simulate trades with real-time market data without using real money. This is an excellent way to practice placing extended-hours orders and understanding how they behave before committing actual capital. Simply switch to paper trading mode in your Webull app or desktop platform.