Finance glossary
Pre-Market Trading
Definition
Trading that occurs before the regular market session opens.
Pre-market trading lets investors react to overnight news and earnings before the official open, typically from 4 to 9:30 a.m. Eastern in the U.S. Liquidity is thinner and spreads wider, so price moves can be exaggerated and harder to execute at favorable prices.
In a sentence
The stock jumped 8% in pre-market trading after the company beat earnings overnight.
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