What Is Pre-market Stock Trading?
by 
The Curious Bag
ANSWERS: 1
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Most people think that trading can only be done during the hours of the stock market, but investors with the right software can engage in special stock trading sessions early in the morning before the stock market opens. This is known as premarket trading.
Time Frame
Normal sessions for stock trading are between 9:30 a.m. and 4 p.m. Premarket stock trading occurs between 4 a.m. and 9:30 a.m.
Significance
Investors engaged in premarket trading take advantage of the fact that some businesses report earnings before the market opens.
Potential
Investors can react quickly to changes in business earnings if they trade premarket.
Benefits
While risky, premarket traders can benefit by making quick decisions on sudden plunges in the marketplace before anyone else.
Warning
Trading can be more difficult in the premarket due to a lack of liquidity. Wider spreads between the bid and ask price can make getting a decent price on a stock more difficult. Premarkets are also more volatile.
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