Online Trading: Buying before the Stock Market opens?
Online stock trading has been popular for a long time and with our expanding experience and popularity of the web in our daily lives it is getting more so. Most people know another person who does online share trading. Have you ever wondered the reason it is so popular? To many individuals the idea really seems reasonable that if you wish to trade shares, you need to simply pick up the phone and contact your very own investment broker, right? There are a few explanations why more individuals are making use of internet share trading instead and why you might like to join this bandwagon too.
Hi,
Is it possible if you have an online account in etrade, scottrade, or whatever other brokerage firm, CAN YOU BUY a stock before the stock market opens ("before ringing bell") like an hour or two hours before for example at 7:30 AM or 8???
They usually call it before market trading, so does your order not get through until market opens or can you buy the stock directly after you put your order in the online account..
Thanks
for example: TT shares went up 23% before market opened and it began rising from 8:00 AM,,, could I have bought some shares from my online account at that time???
Online Stock Trade
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Trading your shares is quite fascinating. It is an awesome learning experience, and definitely puts the power in your hands as far as your personal financial future. However, before you start trying out any stock market whatsoever, you should spend time understanding the process. You need to know exactly what a share is and also exactly how it benefits you to purchase it. For people with no thought of the way the stock market works, you truly should not be engaged in it just yet. Take some time to read up and get a better comprehension on how everything works.
Below are a few main advantages to trading stocks and shares on the internet:
The most current information: You will get instant access to the accounts to enable you to examine them Twenty-four hours a day, 7 days per week. It is important to have the ability to notice what is happening in your accounts as often as possible.
Your charges are a lot smaller: Whenever you trade stocks and shares by using a broker, you might spend up to $50 to perform one trade. On-line stock trading sites frequently charge $7 to $10 per trade. This kind of price savings will mean that you can do way more trades each month and also stick within the budget.
Research and study: Almost all trading sites grant you access to loads of training helps and information. This can be a good way to learn all about any trading markets as well as the way they work.
Ease: It is much more convenient to buy and sell shares from the privacy of your own home while you are in your pajamas. Should you wish to make a trade first thing in the morning or perhaps very late at night, are planning to call up your own stock adviser? What happens if you observe an issue on a financial website and you want to get in on the action? Will you have the ability to get in touch with the brokerage at midnight to generate a trade for you? The chances are slim that you'll be able to do this, so it is very important to have access to your current accounts and be able to make your own trades when you wish.
If you decide that you want to trade securities on the internet, take some time to investigate several of the online trading websites. You can find quite a few and the prices may spread over a range. Find a site you are at ease with, and try them out for a couple of transactions. You can even find a site that provides free deals if you are dealing with a larger level of investment.
Filed under Trading Resources by on May 6th, 2010. Comment. 
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Comments on Online Trading: Buying before the Stock Market opens?
It can be done with pretty much any broker these days…but it usually requires signing a form acknowledging the risks (most of which are because of thin volume) plus going through some sort of special order process designating the order is for extended hours trading (that’s E-Trade’s name for it). I have accounts with Fidelity and Interactive, they both allow it…same commissions as for a regular session trade. I’ve never had to pay any extra fees to set up extended hours trading…although some brokers charge a larger commission on extended hours trades. I looked up E-Trade…they allow it, but charge you an extra $0.005/share in commission. I couldn’t find a reference to it on ScottTrade’s site…but I’d guess there is a way from them as well.
The thing about before and after hours trading is unless there is news, the volume is usually extremely light, and the spreads are usually quite wide. It is hard to get a good fill there…you’ve got to be careful, and enter only limit orders. The premarket hours are usually from 8-9:30 am eastern and aftermarket runs until about 8 p.m. eastern. Its worth knowing the procedures with your broker and having it set up so that if you see something you want, its all set to go. A call to your broker, or looking it up on the website ought to do it.
BTW, it looks like TT didn’t go much further than the open price, and actually finished below where it opened…within $0.06 of the low. It’s a takeover…usually, takeovers are priced at a slight discount from the offer price to allow for implied interest to the close date, and a risk premium of the deal falling apart. I wouldn’t chase that one unless you have some knowledge of how to value takeover plays.
No.
Most online brokers will enable you to trade in the pre or post market, but you have to call to set it up. As a word of caution though, they typically charge a hefty fee, and the pre/post market typically has a huge bid/ask spread. Although you may gain an advantage from time to time in the off hours, over the long run it is a bad idea. In hindsight you could have bought TT cheaper, but more often than not you will find out you got a very bad price in the premarket. Good luck.