How to Buy Stock Pre Market Thinkorswim

Interested in getting a head start on your stock trading by buying stocks before the market officially opens? Look no further than Thinkorswim, a popular trading platform that offers pre-market trading capabilities. In this article, we will guide you through the process of buying stocks pre-market on Thinkorswim, including the steps you need to take and important things to keep in mind.

Understanding Pre-Market Trading

Before we dive into how to buy stocks pre-market on Thinkorswim, let's first understand what pre-market trading is. Pre-market trading occurs before the official opening of the stock market, allowing traders to react to news and events that may impact stock prices. It is important to note that trading during this time comes with its own set of risks, including lower liquidity and wider spreads.

How to Buy Stock Pre-Market on Thinkorswim

Now that you have a basic understanding of pre-market trading, let's explore how you can buy stocks before the market opens using the Thinkorswim platform. Follow these steps to place pre-market orders on Thinkorswim:

1. Log in to Your Thinkorswim Account: Launch the Thinkorswim platform on your computer or mobile device and log in to your account.

2. Navigate to the Trade Tab: Once you are logged in, navigate to the 'Trade' tab to begin placing a pre-market order.

3. Select Pre-Market Session: In the Order Entry section, select 'EXT' (Extended Hours) as the session for your order.

4. Enter Order Details: Enter the stock symbol, quantity, order type, and price for your pre-market order.

5. Review and Submit Order: Double-check your order details for accuracy and submit your pre-market order on Thinkorswim.

Important Things to Consider

While trading stocks pre-market can be advantageous, it is essential to consider the following factors before placing pre-market orders on Thinkorswim:

• Volatility: Prices can be more volatile during pre-market trading due to lower trading volume.

• Limited Liquidity: There may be fewer buyers and sellers in the pre-market, leading to wider bid-ask spreads.

• News Impact: News and events released outside of market hours can significantly impact stock prices.

Trading stocks pre-market can provide opportunities for traders to react to news and events before the official market open. By using the Thinkorswim platform, you can access pre-market trading and take advantage of early trading opportunities. Remember to stay informed, manage your risks, and make informed decisions when buying stocks pre-market on Thinkorswim.