Robinhood is a handy app where you can buy and sell stocks commission-free. Apart from trading during regular hours, the platform also allows you to trade after hours. This gives you access to huge benefits, such as increased market activity and better prices. However, this feature is not available out of the box and you will need to enable it. This article will detail buying or selling on Robinhood after hours.
Buy and sell after hours: Robinhood Gold
While after-hours trading isn't too complicated, it's only for Gold members, so you'll need to upgrade your membership first. The subscription costs $5 per month, and here's how to activate it on your mobile phone:
- press the "Account" symbol in the lower right part of your screen.
- Tap the three bars at the top of your screen and choose " Settings. »
- press the « Or Robinhood » button.
The process is slightly easier in the web version:
- Hit "Account" at the top right of your screen.
- press « Or Robinhood ».
Buy and sell stocks after hours
Once you've activated Robinhood Gold, you can now start buying and selling stocks after hours:
- Head to the detail page of any action. At the bottom of the screen, tap the " To exchange " button.
- followed by either "Buy" ou " To sell. » The "Buy" button will automatically appear if you have not already purchased the stock.
- Type in the amount of money you want to buy or sell in dollars. If you want to order or sell stocks, select the menu in the upper right. To select « dollars » and choose “Buy in shares” (" Sell in shares” when selling.)
- Review the order and verify that all of your information is correct. press the "Edit" in the upper left part of the screen if you want to modify the order.
- Swipe up and your order will be submitted.
Why trade stocks after hours?
There are several reasons why trading on Robinhood after hours can be a worthwhile investment. One of the biggest advantages is during results announcements. The shares of the company you own may report their quarterly earnings after the market closes. As a result, prices may move more significantly than during regular hour sessions, giving you plenty of potential opportunities.
Activity in foreign markets is another benefit of after-hours trading. European or Asian markets may have an impact on US market prices. Activity outside of the US takes place after regular trading hours and extended sessions allow you to capitalize on a large number of stocks.
When are Robinhood's before and after hours trading sessions?
Robinhood Markets launch at 9:30 a.m. Eastern Time during regular trading sessions. Robinhood's pre-market launches 30 minutes before normal trading hours, opening at 9:00 a.m. Eastern Time. The period between 16:00 p.m. and 18:00 p.m. Eastern Time refers to the after-hours trading session. Combine that with pre-marketing and you get an extra two and a half hours of trading each day.
Does Robinhood offer market orders?
Robinhood offers market order trading. They have a higher priority and usually run immediately during normal and extended sessions. Most investors use market orders when they want to avoid partial fills or trade their stocks quickly.
Keep in mind that market orders do not guarantee a price to their owners. The app can automatically convert your market buy order to a limit order with a 5% collar to protect against large price swings. Robinhood does the same with limit orders during extended sessions.
If you place market orders after the evening sessions close, Robinhood will transmit them to the regular trading sessions the following morning. Also, a trailing stop order or a regular stop order will not be executed during extended hour sessions. Stop-loss, stop-limit and trailing stop orders submitted during extended hours are placed in the market when normal trading sessions begin.
Does Robinhood offer limit orders?
If you want to place limit orders, keep in mind that you can only do so during after-hours and pre-market trading sessions. Your order will then be executed if the target limit price of the action and the lot size are available. Robinhood automatically converts your market orders to limit orders and includes a 5% collar to protect against large price swings.
Does after-hours selling count as day trading on Robinhood?
If you buy a stock during normal trading hours and sell it in the extended session on the same day, the trade will still be considered a day trade for purposes of day trading rules. If you want to avoid day trading, you will need to sell your shares the next day.
What are Robinhood's trading fees?
There are no trading fees on Robinhood. Many other actions in the app are also free, but some have a cost. Here is a brief breakdown:
• No commission is charged for stock transactions.
• Options trading has no per-contact or per-step fees.
• You need a Gold Membership to trade on margin, covering $1 margin. If you wish to exceed the amount, you will be subject to 000% interest.
• Account transfer fee is $75.
• There are no assignment and exercise fees.
• Sending domestic checks overnight costs $35.
• Live brokerage services cost you $10 per trade.
• Sending domestic wire transfers costs $25, while the fee for international wire transfers is $50. Receiving a transfer generally does not include any fees.
Step up your investment game
When buying or selling on Robinhood, don't settle for regular trading hours. Extended sessions have huge benefits, and now you know how to take full advantage of them. After your 30-day free trial of Gold subscription is over, be sure to extend your premium subscription and extend access to this great feature. From there, make your investments the same way you would in normal market sessions.
Have you tried trading after hours on Robinhood? Have you managed to seize excellent opportunities? Are you considering extending your Gold Membership? Let us know in the comments section below.