Pre-Market

AAA

DEFINITION of 'Pre-Market'

A period of trading activity that occurs before the regular market session. The pre-market trading session typically occurs between 8:00 - 9:30 A.M. EST each trading day. Many investors and traders watch the pre-market trading activity to judge the strength and direction of the market in anticipation for the regular trading session.

INVESTOPEDIA EXPLAINS 'Pre-Market'

Pre-market trading activity generally has limited volume and liquidity, and therefore, large bid-ask spreads are common. Many retail brokers offer pre-market trading, but may limit the types of orders that can be used during the pre-market period.

RELATED TERMS
  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  3. At Limit

    An order that sets a maximum limit on the buy price and/or a ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The ...
  5. Intraday

    Another way of saying "within the day". Intraday price movements ...
  6. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
Related Articles
  1. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  2. Understanding Order Execution
    Investing Basics

    Understanding Order Execution

  3. How can my stock's price change after ...
    Investing

    How can my stock's price change after ...

  4. Where can I find information about pre- ...
    Trading Strategies

    Where can I find information about pre- ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center