Investing Dictionary
Basics

What is Pre-Market Trading?

Trading that happens before the market officially opens

Full Explanation

The stock market officially opens at 9:30 AM ET, but you can trade from 4 AM ET in pre-market. Volume is low and prices can be volatile. Earnings reports often drop before market open, causing big pre-market moves.

Pro Tip

Pre-market prices can swing wildly. Don't panic based on pre-market alone.

Related Basics Terms

Dividend

Cash a company pays you just for owning their stock

ETF

A basket of many stocks in one

Federal Reserve

The US central bank that controls interest rates and the money supply

Going Long

Buying a stock expecting it to go up

View all Basics terms →

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