Webull Introduces Overnight Trading: Here Is How It Works
Webull, the popular investing platform, has expanded its trading hours to 24/5, offering investors the flexibility to trade their favorite stocks and ETFs around the clock. This new feature allows you to capitalize on market movements at any time of day. In this blog post, we'll delve into the specifics of Webull's overnight trading, including how it works, the rules and regulations, and tips for successful trading. Whether you're a seasoned investor or just starting out, this guide will equip you with the knowledge you need to make the most of this exciting new opportunity.
Webull Joins the Fray: All About Overnight Trading
In a move mirroring Robinhood's recent update, Webull has introduced overnight trading, allowing you to trade select securities 24 hours a day, 5 days a week (except for a brief pause between regular and extended hours). This blog post will guide you through everything you need to know about Webull's overnight trading functionality.
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Demystifying Overnight Trading
Webull utilizes Blue Ocean Alternative Trading System (BOATS) to facilitate overnight trades and provide quote data. Essentially, BOATS operates outside traditional stock exchanges, connecting buyers and sellers for after-hours transactions. Keep in mind that major price swings, corporate actions, and internal risk control adjustments by Blue Ocean can affect available securities.
When Can You Trade Overnight?
The overnight trading session on Webull runs from 8:00 PM EST Sunday evening to 4:00 AM EST Friday morning. Here's a breakdown of the complete trading schedule:
- Pre-market: 4:00 AM EST – 9:30 AM EST
- Regular Market: 9:30 AM EST – 4:00 PM EST
- After-hours: 4:00 PM EST – 8:00 PM EST
- Overnight: 8:00 PM EST – 4:00 AM EST
Placing Your First Overnight Trade
Before diving in, make sure you understand the risks associated with extended-hours trading by reviewing Webull's Extended Hours Trading Disclosure (link in the caption). Luckily, enabling overnight trading on your account doesn't require any special permissions. Here's how to place an overnight trade on the Webull mobile app:
- Verify if the stock you want to trade has a 24H icon, indicating it's available for overnight sessions.
- Navigate to "Trade" and choose "Buy" or "Sell."
- Select "Limit" as the order type.
- Specify your desired limit price and quantity.
- Choose "Overnight" for the trading hours.
- Select "Day" for the time-in-force option.
- Confirm your trade by tapping "Submit."
Overnight Trading Rules and Restrictions
- No Shorting: Shorting a stock is not allowed during the overnight session.
- Account Restrictions: Accounts in poor standing (e.g., with pending margin calls) may be restricted from overnight trading.
- Limit Orders Only: Only limit orders are accepted. Market, stop, stop-limit, and trailing stop orders are unavailable.
- Whole Shares Only: Fractional shares cannot be traded in the overnight session.
- Day Orders Only: Overnight trading utilizes day orders, which expire at the end of the overnight session (4:00 AM EST) if unfilled.
- No Margin: Margin usage is not permitted for overnight trades. Orders exceeding your cash buying power will be rejected.
- Day Trade Tracking: Trades placed between 8:00 PM and 11:59 PM are settled on T+1, while those between 12:00 AM and 4:00 AM settle on T. This can affect day trade calculations (see examples below).
Example 1:
- Buy 1 XYZ @ 9:00 PM on Tuesday
- Sell 1 XYZ @ 10:00 AM on Wednesday
This is considered a day trade because both the buy (overnight session) and sell (regular session) are settled on T+1 (Wednesday).
Example 2:
- Buy 1 XYZ @ 10:00 AM on Wednesday
- Sell 1 XYZ @ 10:00 PM on Wednesday
This is not a day trade because the buy order settles on T (Wednesday) and the sell order (overnight session) settles on T+1 (Thursday).
Finding Overnight Tradable Securities & Including Overnight Data
Since not all securities are available for overnight trading, you can find a continuously updated list within the "Markets" tab of the Webull mobile app.
By default, charts and positions display the 4:00 PM closing prices. To incorporate overnight data into your chart view, navigate to your trading session settings within the app.
