Merrill Edge is an online brokerage platform that offers its users a wide range of investment options, including stocks, bonds, options, and ETFs. One of the platform’s most popular features is its extended-hours trading, which allows users to trade stocks before and after regular market hours.
In this article, we will explore the Merrill Edge extended hours trading feature and the benefits it offers to investors.
What is Extended Hours Trading?
Extended hours trading refers to the period of time before and after regular market hours when investors can trade securities. Regular market hours are typically from 9:30 a.m. to 4:00 p.m. Eastern Time. However, extended hours of trading allow investors to trade securities before the market opens and after it closes.
Merrill Edge Extended Hours Trading
Merrill Edge offers its users the ability to participate in extended-hours trading. The platform allows users to trade during the pre-market session, which takes place from 7:00 a.m. to 9:30 a.m. Eastern Time, and the after-hours session, which takes place from 4:00 p.m. to 8:00 p.m. Eastern Time.
Pre-Market Trading
Pre-market trading is the period of time before regular market hours when investors can trade securities. This period of trading is typically less liquid than regular market hours, and the bid-ask spread can be wider. However, pre-market trading can be a useful tool for investors who want to react to news or events that occurred after regular market hours.
Merrill Edge’s pre-market trading session allows investors to react to news and events that occurred overnight or before the market opens. Investors can place market and limit orders during this period, and any executed trades will be reflected in their account’s balance once regular market hours begin.
After-Hours Trading
After-hours trading is the period of time after regular market hours when investors can trade securities. This period of trading can be less liquid than regular market hours, and the bid-ask spread can be wider. However, after-hours trading can be a useful tool for investors who want to react to news or events that occurred after regular market hours.
Merrill Edge’s after-hours trading session allows investors to react to news and events that occurred during regular market hours. Investors can place market and limit orders during this period, and any executed trades will be reflected in their account’s balance once regular market hours begin the next day.
Benefits of Extended Hours Trading
Extended hours trading offers several benefits to investors. One of the primary benefits is the ability to react to news or events that occurred outside of regular market hours. For example, if a company announces earnings after the market closes, investors can react to that news by trading during the after-hours session.
Another benefit of extended-hours trading is the ability to manage risk. If an investor holds a position that is experiencing adverse news or events, they may want to exit the position before the regular market hours open. Extended hours trading allows investors to do so, potentially limiting their losses.
Finally, extended hours trading can provide opportunities for investors to make trades that they may not have been able to during regular market hours. For example, an investor may be able to buy or sell a security that is experiencing high volatility during the pre-market or after-hours session.
Final Words
Merrill Edge’s extended hours trading feature provides its users with the ability to trade securities before and after regular market hours. This feature offers several benefits to investors, including the ability to react to news or events that occurred outside of regular market hours, manage risk, and take advantage of opportunities that may not be available during regular market hours. If you are a Merrill Edge user, the extended hours trading feature is a valuable tool that can help you achieve your investment goals.
