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

Index

A scoreboard for a group of stocks

Sector

A group of companies in the same type of business

ETF

A basket of many stocks in one

After-Hours Trading

Trading after the market closes at 4 PM ET

View all Basics terms →

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