 |
| Image: Moneybestpal.com |
Pre-market refers to the period of time before regular market trading hours start in the context of financial markets. Investor orders to buy or sell securities during this period will not be carried out until the start of regular trading hours.
Several hours before the start of regular trading hours, there is a pre-market period. For instance, pre-market trading in the United States often starts at 4:00 a.m. Eastern Time and finishes at the opening bell, which is typically at 9:30 a.m. Eastern Time.
Trading volume is typically lower during pre-market hours than it is during regular trading hours, and bid-ask spreads may be higher. Investors may find it more challenging to complete trades at advantageous pricing as a result of this. Pre-market trading may also be more volatile than regular trading since the market may be affected by news or events that take place after regular trading hours.
Pre-market trading can often give investors a chance to respond to news or events that happen outside of usual trading hours, but it also entails more risks and difficulties than regular trading.
