Trading the US market
Pre-market
Definition
Pre-market is trading before the 9:30 a.m. ET open, starting as early as 4:00 a.m. ET on the main electronic venues, though many brokers offer a shorter window. Volume is thin and spreads are wide, so prices can jump on small orders. See US stock market hours for every session in your time zone.
Example
Say a stock closed at $40.00 and the company reports good news at 7:00 a.m. In the pre-market it is quoted at $42.10 bid and $42.50 ask, a 40-cent spread, and a single 500-share buy order lifts the last trade to $42.80. When the 9:30 open brings far more orders, the opening price can land well away from those early quotes.
Hypothetical numbers, for illustration only.
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