How to Buy or Sell After Hours in Robinhood
Robinhood is a handy app where you can buy and sell stocks without commission. Apart from regular-hours commerce, the platform also allows you to trade after hours. This gives you access to tremendous benefits, such as heightened market activity and better prices. However, this feature isn’t available from the get-go, and you’ll need to enable it.
In this entry, we’ll tell you all about buying or selling on Robinhood after hours.
How to Buy or Sell After Hours on Robinhood?
While trading after hours isn’t too complicated, it’s only reserved for Gold members, so you’ll first need to upgrade your membership. The membership costs $5 a month, and here’s how to activate it on your mobile phone:
- Press the “Account” symbol in the lower-right part of your screen.
- Press the three bars in the upper part of your display and choose “Settings.”
- Press the “Robinhood Gold” button.
The process is slightly easier in the web version:
- Hit “Account” in the upper-right part of your screen.
- Press “Robinhood Gold.”
You can now start buying stocks after hours:
- Head to your stocks’ detail page. This will take you to your stock’s previous performance, company earnings, analyst ratings, and other useful details when marketing stocks.
- In the lower part of the screen, press the “Trade” button, followed by “Buy.” The “Buy” button will show up automatically if you haven’t purchased the stock already.
- Type in the amount of money you wish to purchase in dollars. If you want to order shares, select the menu in the upper-right section. Select “Dollars” and pick “Buy in Shares.”
- Review the order and verify that all your information is correct. Press the “Edit” button in the upper-left part of the screen if you want to edit the order.
- Swipe up, and your order will be submitted.
Take the following steps to sell stocks after hours:
- Launch the app and find your stock’s detail page.
- Press the “Trade” button and choose “Sell.”
- Go to the top-right section and decide whether you wish to sell the stock in shares or dollars.
- Press the “Review” button to go through your transaction once again and make sure that everything is in order.
- If everything seems OK, submit your order by swiping up.
If you want to make limit orders, bear in mind that you can only do it in the after-hours and pre-market trading sessions. Your order would then be executed if the stock’s target limit price and lot size are available. Robinhood automatically converts your market orders to limit orders and includes a 5% collar to safeguard against significant price fluctuations.
If you make market orders once the evening sessions have been closed, Robinhood will forward them to regular trading sessions the next morning. Additionally, a trailing stop order or a regular stop order won’t be executed during extended-hours sessions. Stop-loss, stop-limit, and trailing stop orders submitted during extended hours are placed on the market when normal trading sessions begin.
What Time Does Robinhood Starts Trading?
Robinhood markets launch at 9:30 AM Eastern Time during regular trading sessions. The period between 4:00 and 6:00 PM Eastern Time refers to the after-hours trading session.
How to Enter Extended-Hours Orders on Robinhood?
Entering extended-hour orders on Robinhood requires you to activate the Gold plan. Here’s how it works in the mobile app:
- Press “Account” in the lower-right section.
- Hit the three bars in the upper-right portion of your display.
- Hit the “Settings” button and choose “Robinhood Gold.”
You can also go to Robinhood’s website to upgrade to Gold:
- Hit the “Account” button in the upper-right part of your screen.
- Press the “Robinhood Gold” button.
Why You’d Trade Stocks After Hours?
There are several reasons why trading on Robinhood after hours can be a favorable investment. One of the greatest benefits is the earnings announcements. The enterprise shares you own may announce their quarterly earnings following the market closure. As a result, the prices can move more significantly than during regular-hour sessions, allowing you to capture many potential opportunities.
Another great thing about after-hours trading is foreign market activity. European or Asian markets can impact US market prices. The activity outside the US takes place after regular trading hours, and extended sessions enable you to capitalize on a large number of stocks.
Coming up are handier tips on trading stocks during regular and extended trading sessions.
How to Trade Pre-Market on TD Ameritrade?
TD Ameritrade is another platform where you can trade your stocks, futures contracts, cryptocurrency, and other assets. Like Robinhood, the program lets you invest during pre-market hours. Keep in mind that you can only use limit orders during pre-market hours. Here’s how it works:
1. Go to your “Application Settings’’ and enable hotkeys.
2. In the left-hand panel, click the “Active Trigger” button.
3. Press the green “Buy” button in the upper part of your screen and hit “Edit” in the pop-up window at the bottom.
4. In the “Order Entry Tools,” navigate to the section after the “Order” tab.
5. Change the “DAY” settings to “EXT,” which will allow you to trade during pre-market and after hours.
6. Change the “Order” preferences to “LIMT” to enable limit orders.
7. Set your limit buy and press the green “Confirm and Send” button.
8. Hit “Send” to submit your order. It will fill during extended hours.
Now let’s see how you can sell a stock during pre-market hours:
1. Navigate to the “Application Settings” and enable your hotkeys.
2. Press “Active Trigger” in the left-hand part of the screen.
3. Hit “Buy” in the upper section of your display and press the “Edit” button in the next window.
4. Change the “Side” configuration to “Sell.”
5. Switch from “DAY” to “EXT” to enable extended-hours trading.
6. Enable limit orders by setting the “Order” tab to “LIMT.”
7. Set your limit sell and press “Confirms and Send.”
8. Click “Send,” and you’re good to go.
Can You Buy Stocks When the Market Is Closed on Robinhood?
You can both buy and sell stocks when the market closes on Robinhood. This refers to extended-hour trading and follows a basic principle. If you submit your market orders during normal trading hours, they can remain pending throughout the remaining trading hours (until 4:00 PM Eastern Time). However, if you submit market orders during extended sessions (4:00 – 6:00 PM and 9:00 – 9:30 AM Eastern Time), they will come into effect during extended hours.
Still, the app doesn’t support all stock market orders after hours. In that case, your orders will be submitted once the market opens.
Is Robinhood a Market Order?
Robinhood does offer market order trading. They have higher priority, and they are usually executed immediately during normal and extended sessions. Most investors use market orders when they want to prevent partial fills or trade their stocks quickly.
Bear in mind that market orders don’t guarantee their owners a price. The app may automatically convert your market buying order into a limit order with a 5% collar to protect it against significant price fluctuations. Robinhood does the same with limit orders during extended sessions.
What Are Robinhood’s Pre-Market Trading Hours?
Robinhood’s pre-market launches 30 minutes before regular trading hours, opening at nine AM Eastern Time. Combine that with after hours, and you get an additional two and a half hours of trading every day.
What Are Robinhood’s Trading Fees?
There are no trading fees on Robinhood. Many other actions in the app are also free of charge, but some do come at a cost. Here’s a brief breakdown:
• No commission is charged for any equity trades.
• Options trading doesn’t come with per-contact or per-leg fees.
• You need a Gold subscription to trade on margin, covering $1,000 of margin. If you want to exceed the amount, you’ll be subject to a 5% interest.
• The account transferring fee stands at $75.
• There’s no assignment and exercise fee.
• Sending domestic checks overnight costs $35.
• Live broker services set you back 10$ per transaction.
• Sending domestic wires costs $25, whereas the fee for international wires is $50. Receiving a wire generally doesn’t include a fee.
What Time Can I Trade on Robinhood?
You can trade on Robinhood both during regular and extended trading hours. Normal operations start at 9:00 AM Eastern Time and cease at 4:00 PM. You can also access extended hours, allowing you to trade between 9:00 AM and 6:00 PM. Therefore, you can invest 30 minutes before Robinhood’s market opens and continue to do so two hours following the closure.
Does Selling After Hours Count as Day Trading on Robinhood?
If you buy a stock during regular trading hours and sell it in the extended session the same day, the transaction will still count as day trading when it comes to day trading rules. If you wish to avoid day trading, you’ll need to sell your stock the next day.
Step Up Your Investing Game
When buying or selling on Robinhood, don’t just stick to regular trading hours. Extended sessions come with enormous benefits, and now you know how to take full advantage of them. Once your 30-day free Gold subscription trial ends, make sure to extend your premium membership and prolong access to this great feature. From there, make your investments the same way as you do during normal market sessions.
Have you tried trading after hours on Robinhood? Did you manage to seize some excellent opportunities? Are you planning on extending your Gold membership? Let us know in the comments section below.