Pre-Market
Definition
Trading session before the official market open.
Pre-Market refers to the trading session that occurs before the official market open. It typically starts at 4:00 AM ET and ends at 9:30 AM ET, allowing traders to react to overnight news and events before the regular trading day begins.
Pre-market trading matters as it provides an opportunity for investors to buy or sell securities at prices that may differ from the regular market hours. For instance, if a company reports earnings before the market open, pre-market trading allows investors to react to the news and potentially profit from price movements before the regular trading day starts.