Pre-Market Trading

[mwahidullahbbt 0]

I recently joined as a member and have a question. I understand that we prepare during the pre-market, but do we also trade during this time? Or is it solely for preparation, with actual trading starting when the market opens? I appreciate your feedback.

 

Thank You.

WAHID

[Paul aka Aurbano 83]

hi @mwahidullahbbt ! there is a period of time called "regular trading hours" (after the 9.30am bell untill 4pm) where volume and liquidity are "normal" or good enough. That is way almost everytrader waits to the open specially if you plan to use big size.

Trading during premarket (before 9.30am) or aftermarket (after 4pm) is also possible but a few extra rules apply. You cannot use market orders as only limit orders are allows. You should notice volume very carefully as you might encounter that liquidity is not enough to enter or exit a position.

Experienced traders do take a partial initial position during premarket when they like the price level and are pretty sure about the direction of the move. However, it takes extra patience and practice.

Hope i helped !