Why does pre market trading exist

Pre-market trading is trading that happens before normal stock market opening hours. While it was once exclusively available to institutional investors, more online brokers offer extended trading hours for investors.

Pre-market trading opens opportunities for investors to act on after-hours news that can affect trading prices at opening. Read on to learn how to take advantage of pre-market trading, with detailed pros and cons.

What is pre market price

What is Pre-Market Trading? 

Pre-market trading is stock trading activity that occurs before regular market sessions. Regular pre-market trading happens between 8 am and 9:30 am. EST, while early premarket trading starts as early as 4 am EST.

Investors and traders watch pre-market activity and act according to new market information.

For example, companies often release important news like a quarterly earnings report outside of normal trading hours. If this is released early in the morning, well before the market opens, investors may initiate trades based on this new information. 

Some companies also mak

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