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

One unit of a stock

Stock Split

When a company divides its shares into more, cheaper pieces

Yield

The income you earn on an investment as a percentage

View all Basics terms →

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