Pre-Market Trading

Pre-market trading takes place before the market's regular trading hours, from as early as 4:00 a.m. EST to 9:30 a.m. EST.
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The majority of trading activity in the American stock market occurs during regular trading hours, from 9:30 a.m. EST until 4:00 p.m. EST. However, most major brokerages facilitate pre-market trading for retail and institutional investors.

Pre-market trading takes place from as early as 4:00 a.m. EST to 9:30 a.m. EST when the market opens for regular trading hours.

Pre-market trading hours vary from broker to broker, and pre-market trading volume is greatest before the market opens for regular trading. Trading outside of regular hours is handled through electronic communication networks, or ECNs. ECNs allow traders to participate directly with one another while the exchanges are closed.

Pre-market trading carries more risk, as less volume creates illiquid markets and wider bid-ask spreads, but also allows investors to take advantage of unique opportunities before the market opens.

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FAQs

Can I trade in the pre-market?

The majority of trading activity in the American stock market occurs during regular trading hours, from 9:30 a.m. EST until 4:00 p.m. EST. However, most major brokerages facilitate pre-market trading for retail and institutional investors.

Pre-market trading takes place from as early as 4:00 a.m. EST to 9:30 a.m. EST when the market opens for regular trading hours. Pre-market trading hours vary from broker to broker, and pre-market trading volume is greatest before the market opens for regular trading.

Trading outside of regular hours is handled through electronic communication networks, or ECNs. ECNs allow traders to participate directly with one another while the exchanges are closed.

Pre-market trading carries more risk, as less volume creates illiquid markets and wider bid-ask spreads, but also allows investors to take advantage of unique opportunities before the market opens. 

Is the pre-market a good indicator?

Pre-market price action provides an indication of where a stock is likely to open when regular trading hours begin. However, the opening direction is not necessarily indicative of price action for the remainder of the trading period. 

How does pre-market trading work?

Trading outside of regular hours is handled through electronic communication networks, or ECNs. ECNs allow traders to participate directly with one another while the exchanges are closed. Most major brokerages facilitate pre-market trading for retail and institutional investors.

Pre-market trading takes place from as early as 4:00 a.m. EST to 9:30 a.m. EST when the market opens for regular trading hours. Pre-market trading hours vary from broker to broker, and pre-market trading volume is greatest before the market opens for regular trading.

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