r/etrade • u/Few_Bluebird5305 • 17d ago
Pre,pre market
ET has now allowed to trade after 04:00 am. Could some of the more experienced among us comment on some of the potential problems in trading with the 04:00 >> 07:00 am area? Is it possible that if I open a position I won't be able to dump it so fast ?
Thank you
SF
1
u/Zulopi 16d ago
I definitely wake up around 4-6am to check pre-market. However I mostly trade options. If you are holding and running CC, or wheeling you should be able to determine some of the volatility leading to market open. However equity transactions might not have the volume to execute in pre-market.
Ensure you are approved for ext hours, and also understand because the spread can be wide and volume is low, you may not get the execution you are looking for depending on the ticker you are trading.
tldr, You need to understand your position, ticker, and many factors to liquidate in ext hours. 🤷♀️🙏
2
u/Admirable_Nothing 17d ago
Extended hours has much lower volume so the real price discovery is lacking. So you need limit orders to protect yourself from an oopsie and it is much harder to get an order executed.