The basics
Pre-market
The pre-market is the trading period before the official market open.
The pre-market is the trading period before the official market open.
Many important moves happen in the pre-market, often after news (earnings, an announcement). Volume is lower and the spread wider there, so it is riskier and suited to experienced traders.
A company posts strong earnings at 7:00: the stock jumps in the pre-market before the open.
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