Robinhood Extended Hours and 24-Hour Trading
If you find the regular trading day too short, Robinhood offers options to extend your trading hours beyond the usual. The platform provides both extended hours trading and a 24-hour market for investors looking for more flexibility.
Read on to explore these options.
Robinhood’s 24-Hour Trading Market
Robinhood’s 24-hour trading market is a newer service that allows investors to trade their favorite stocks outside of regular and extended trading hours.
24-Hour Trading Times at Robinhood
Trading on Robinhood’s 24-hour market begins each week at 8 pm EST on Sunday, three hours after CME futures products start trading. It concludes at 8 pm EST each Friday.
During the week,
securities included in the 24-hour market list can be traded continuously, except during weekends when the market is closed from 8:01 pm EST on Friday until 7:59 pm EST on Sunday.
Trading During the 24-Hour Session
When trading in Robinhood’s 24-hour market, there are a few important restrictions. Only limit orders are allowed. Market orders placed will execute when regular market trading hours resume.
Another limitation is that standard stop-loss orders do not function during the 24-hour or extended hours sessions. To create protective orders, investors must place limit orders after establishing their positions.
Fractional share trading is also unavailable during the 24-hour trading session.
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24-Hour Market Symbols
Robinhood has curated a list of stocks and ETFs for its 24-hour market. These include major companies that constitute significant portions of U.S. indices. To find this list, check under "Trending Lists.”
The list of securities available for Robinhood’s 24-hour market is expected to expand over time, currently featuring over 200 stocks and ETFs.
Among them are Google (GOOGL), Meta (META), Amazon (AMZN), Tesla (TSLA), and ETFs representing various sectors of the U.S. market like the S&P 500 (SPY), energy sector (XLE), and Nasdaq (QQQ), among others.
Robinhood Extended Hours Trading
Similar to the 24-hour market, Robinhood’s extended-hours trading allows investors to participate in the market outside of regular trading hours.
Robinhood’s pre-market trading session runs from 7 am to 9:30 am EST, while the after-hours session is from 4 pm to 8 pm EST. These sessions provide ample time to trade around earnings releases, economic data, and other market-moving events.
Trading in the Extended Hours on Robinhood
When trading during extended hours on Robinhood, be aware of a few limitations.
Firstly, not all stocks and ETFs support fractional share trading during extended hours. The availability of fractional shares may change based on market conditions and liquidity. Stocks with consistent high volume generally support fractional trading during extended hours.
Additionally, market orders are not accepted during extended hours. Only limit orders with GFD (Good for Day) or GTC (Good till Canceled) options are available.
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Up to $200 free stock + 1% IRA match + transfer fee refund at Robinhood.
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Benefits of Extended Hours Trading
Curious about the benefits of extended trading hours? Here are a few reasons why investors opt for extended trading sessions.
Higher Volatility – Many investors choose highly volatile stocks to trade during pre- and post-market sessions. High-volume stocks can lead to significant price movements, allowing traders to capitalize on momentum.
Global Events Response – Whether it’s news events, political actions, or unexpected economic data from foreign markets, these events often occur during extended hours. Savvy investors use this time to their advantage.
Flexible Scheduling – Extended trading hours accommodate investors with different schedules. Whether trading early in the morning, late at night, or during evenings, traders can engage in the market at their convenience.
Considerations for Extended Hours Trading
Extended hours trading offers unique advantages but comes with increased risks that traders should consider.
Some key considerations include:
Higher Volatility – Stocks can experience significant price swings during extended hours due to limited trading activity. This volatility can amplify gains but also increase losses if not managed properly.
Wider Bid/Ask Spreads – Reduced trading volume can lead to wider bid and ask spreads, making it challenging to execute trades at desired prices.
Inconsistent Order Fills – Orders, especially large ones, may not be filled consistently during extended hours due to lower liquidity.
Updated on 7/9/2024.
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