Are you interested in trading securities before the regular market hours on TD Ameritrade? Pre-market trading can offer unique opportunities for investors, but it also comes with increased risks. In this article, we will guide you on how to trade pre-market on TD Ameritrade and discuss some important factors to consider before engaging in pre-market trading.
Pre-market trading refers to the buying and selling of securities before the official opening of the stock market. This extended-hours trading session on TD Ameritrade typically takes place between 4:00 a.m. and 9:30 a.m. Eastern Time, before the regular market hours from 9:30 a.m. to 4:00 p.m. Pre-market trading allows investors to react to news and events that occur outside of regular market hours, such as earnings reports or economic data releases.
Trading pre-market on TD Ameritrade is a straightforward process, but it requires you to meet certain criteria and follow specific steps:
Open an Account: To trade pre-market on TD Ameritrade, you need to have a brokerage account with the company. If you don't have an account yet, you can easily open one online by providing your personal information and funding your account.
Enable Extended-Hours Trading: Before you can trade pre-market, you need to enable extended-hours trading on your TD Ameritrade account. This can typically be done through the account settings or by contacting customer support.
Place Your Pre-Market Order: Once extended-hours trading is enabled, you can place pre-market orders through the thinkorswim platform or TD Ameritrade's website. Simply select the security you want to trade, choose 'Pre-Market' as the session, and enter your order details.
Review and Confirm Your Order: Before submitting your pre-market order, review all the details carefully, including the security, quantity, price, and trading session. Once you are satisfied with your order, you can submit it for execution.
Monitor Your Trade: After placing your pre-market order, it's essential to monitor the trade closely, as pre-market trading can be more volatile and illiquid compared to regular market hours. Keep an eye on your order status and any relevant news or events that could impact your trade.
Trading pre-market on TD Ameritrade can be a valuable tool for active traders looking to capitalize on early market movements. By following the steps outlined in this article and understanding the benefits and risks involved, you can make informed decisions when trading pre-market. Remember to conduct thorough research and consult with financial professionals before engaging in pre-market trading to mitigate potential risks and maximize your trading opportunities.