What is Pre Market NSE
Here, The pre-market is the period of trading activity that occurs before the regular market session.
And The pre-market trading session typically occurs between 8 and 9:30 a.m. EST each trading day.
Hence, many investors and traders watch the pre-market trading activity.
Further, to judge the strength and direction of the market in anticipation for the regular trading session.
BREAKING DOWN ‘Pre-Market’
Here, Pre-market trading activity generally has limited volume and liquidity.
Therefore large bid-ask spreads are common.
Hence, Many retail brokers offer pre-market trading. What is Pre Market NSE.?
Thus, may limit the types of orders that can be used during the pre-market period.
Here, Several direct-access brokers allow access to pre-market trading to commence as early at 4 a.m. EST from Monday through Friday.
And It is important to remember there is very little activity for most stocks so early in the morning.
Thus, unless there is news. What is Pre Market NSE.?
Here, The liquidity is also extremely thin with most stocks only showing stub quotes.
And Index-based exchange-traded-funds (ETF) such as the SPDR S&P 500 ETF have moving quotes due to the trading in the S&P 500 futures contracts. What is Pre Market NSE.?
What is Pre Market NSE
Many of the most widely held top holdings in benchmark indices may also get movement in the event of a significant gap up or down in the S&P 500 futures.
And Stocks such as Apple Inc.tend to get trades as early at 4 a.m. EST. Pre-Market Trading
Here, since the market is so thin before 8 a.m. EST.
Hence, there is very little benefit to trading so early. What is Pre Market NSE.
And In fact, it can be quite risky due to the possible slippage from exceptionally wide bid-ask spreads.
Hence, Most brokers begin pre-market access at 8 a.m. EST.
And This is when the volume picks up simultaneously across the board.
Hence, especially for stocks indicating a gap higher or lower based on news or rumors.
And The pre-market indications for a stock can be especially tricky for traders and should only be interpreted lightly. What is Pre Market NSE.?
Hence, Stocks can appear strong pre-market, only to reverse direction at the normal market open at 9:30 a.m. EST.
And Only the most experienced traders should ever consider trading in the pre-market. What is Pre Market NSE.
Therefore, one advantage is the ability to get an early jump on reactions to news releases.
And the limited amount of volume can give the perception of strength or weakness.
That can be deceptive and false. What is Pre Market NSE.
Thus, when the market opens as real volume comes into play.
What is Pre Market NSE
Hence, Premarket trading can only be executed with limit orders through electronic communication networks. What is Pre Market NSE.
And if you want to invest in a stock market, then you should know how to invest in a stock market.
Such as Archipelago (ARCA), Instinet (INCA), Island (ISLD) and Bloomberg Trade Book (BTRD).
Therefore Market makers are not permitted to execute orders until 9:30 a.m. EST. opening bell.
Pre-market and after-hours trading
Here, Some of the most important market moves take place outside the NYSE and Nasdaq regular trading session of 9:30 a.m. to 4 p.m. and EST (Eastern Standard Time).
Here, Price volatility is driven by forces outside the regular trading session.
And knowing how to trade stocks and futures during this period is an opportunity for investors looking to profit. What is Pre Market NSE.
Hence, The often-volatile pre-market trading session is widely followed to gauge the market outlook ahead of the regular open.
The Economic indicators are key drivers of price action in the pre-market trading session.
Hence, A majority of important economic releases are issued at 8:30 a.m.
EST, 1 hour before the New York market opens. What is Pre Market NSE.
And Market reaction to the data can cause substantial price moves and set the trading tone for the day.
Hence, The Employment Situation Summary, issued by the Bureau of Labor Statistics at 8:30 a.m.
EST on the 1st Friday of every month is the release with the greatest impact on the market.
And Other major market-moving reports released at 8:30 a.m.
EST include the gross domestic product (GDP).
Hence, Looking at the analyst expectations for these numbers will help you understand the market reaction.
Open Market Tips
Usually, the biggest market moves occur. What is Pre Market NSE.
When the number far exceeds or misses the expected forecast.
And creating high volatility and the trading risks and opportunities that accompany it.
Earnings Releases What is Pre Market NSE.
Here, Earnings season refers to the period.
In which publicly traded companies release their quarterly earnings reports.
Earnings season starts 1 or 2 weeks after the end of each quarter.
Consequently, most companies release their earnings in early to mid-January, April, July, and October.
And During this time, company earnings are generally released before the market open and after the close. What is Pre Market NSE.
Often causing substantial price moves in the underlying stocks outside regular trading hours.
Therefore, As with economic indicators, the largest reactions typically occur when a company substantially exceeds or misses expectations. What is Pre Market NSE.
Here, Having access to extended-hours trading allows the stock trader to react quickly and potentially capitalize on the initial reaction to the positive or negative news.
Major News Events
The News and announcements of major geopolitical events are often reported. What is Pre Market NSE.
And after regular trading hours or over the weekend, potentially causing massive market moves.
Hence, Wars and natural disasters are examples of unexpected events that can take the market by surprise at any time. What is Pre Market NSE.
And having access to the market before the market open allows you to better position yourself.
Trading Stocks on ECNs
Electronic communication networks, otherwise known as ECNs, are a mechanism that enables traders to participate in extended-hours stock trading.
ECNs are electronic trading systems that automatically match buy and sell orders at specified prices, allowing major brokerage firms. What is Pre Market NSE.
Individual traders to trade directly among themselves without requiring a middleman such as an exchange market maker.
The Futures Market
The futures market especially the benchmark S & P five hundred futures contract.
And is closely followed in the pre-market session to gauge market sentiment for the day.
Futures contracts are standardized contracts to buy or sell an asset. What is Pre Market NSE.
Hence, such as a physical commodity or a financial instrument, at a predetermined future date and price.
You can also read the detail of stock market NSE.
Stock index futures are futures contracts on financial indexes such as the Dow, Nasdaq or S&P 500.
Hence, The Chicago Mercantile Exchange’s E-mini S & P 500 futures contract is the world’s most actively traded stock index future.
With more than 2.2 million futures and options. What is Pre Market NSE.
And contracts traded on average per day, as of January 2018.
Hence, Trading virtually 24 hours a day, E-mini S&P 500 futures can indicate how the market is likely to trend at the start of the New York session open.
And S&P 500 futures are often used by money managers to either hedge risk over a certain time period by selling the contract shortly, or to increase their stock market exposure by buying it.
In addition to offering market access almost 24 hours a day, a major benefit of trading E-mini S&P 500 futures is the high liquidity level. What is Pre Market NSE.
The bids-to-offer spreads are consistently tight.
The spread is effectively a cost of entry to the market. What is Pre Market NSE.?
And Tight spreads are critical because of the wider the spread.
The more a trader has to move in your favor just to break even. What is Pre Market NSE.
And unlike trading stocks on ECNs, all E-mini S&P 500 futures trades are executed centrally through the Chicago Mercantile Exchange and its member firms.
The Bottom Line
Here, Once the dominion of institutional investors. What is Pre Market NSE.
And the advent of electronic markets has made trading outside market hours increasingly accessible to retail traders and investors.
Whether you are looking to get a feel for how the market will open. What is Pre Market NSE.?
And for wider trading opportunities.
Therefore, the following market action outside regular trading hours opens up a myriad of new possibilities.
Here, One of the most important things to master as a trader is what you do during pre-market trading hours. What is Pre Market NSE.
And How you start your day sets up your day. It either sets it up for success, or for failure.
Hence, Did you hear about the Olympic gold medalist who was binge drinking right before the race?
The reason this kind of story is absent from our reality is that it doesn’t happen.
And Our behavior outside of our primary goals always affects our performance.
Hence, Sometimes it only affects us in small ways but more often it does so in a big way.
It is the same for trading. What is Pre Market NSE.
And What you do pre-market trading affects your trading results.
Here are seven essential pre-market trading techniques to help you get the best results and set yourself up for success.
Earnings releases. What is Pre Market NSE.?.
Open Market Strategy
Here, they conjure up an image of nervous traders glued to their screens waiting to see what unfolds.
And Some traders avoid earnings release times.
Others wait for them. What is Pre Market NSE.
And Both methods can be profitable.
1 thing is a guarantee.
Any trader who ignores earnings releases completely will experience pain.
Prices are hundred percent influenced by the reactions and trades of people. What is Pre Market NSE.
And The imbalances between supply and demand dictate the movement of an instrument’s price.
The planned reactions – or gut reactions – of traders can move stock prices very fast.
And Opinions and analysis aside, this can be big trouble if you do not know it is coming.
Economic indicators What is Pre Market NSE.
Here, economic indicators can have a significant influence on trading results.
And Stock, commodity futures and Forex traders alike often use them.
Hence, the impact they have varies depending on the individual trading strategy used.
HeadLine What is Pre Market NSE.
Thus, quickly check headline news before trading.
Hence, Sensationalist media is always competing for our attention.
Therefore, traders who keep things simple have an advantage. What is Pre Market NSE.
Mind the Spread What is Pre Market NSE.
Pre-market trading preparations can include actually trading during pre-market hours. What is Pre Market NSE.
And This can be as lucrative as any other style of trading.
Here, But there is one thing to beware of.
And That one thing is the spread. What is Pre Market NSE.
Whether you trade stocks or futures in the pre-market, watch out for wide spreads.
And there is a stark comparison to trading volumes during regular trading hours.
Consistency is a mainstay of great trading performance. What is Pre Market NSE.
And Consistency is also important in your pre-market trading preparations. What is Pre Market NSE.
Hence, What a trader does before trading can have a large impact on their trading results.
And Consider a trader who wakes up minutes before the market opens. What is Pre Market NSE.
They stumble to a small telephone screen to check quotes.
And see what is happening in the market.
Here, Compare that image to a trader who has woken up from a night of solid sleep.
Thus, he exercised. and Then he had a nutritious breakfast.
And that same trader arrives at his trading desk with plenty of time.
What is Pre Market NSE.
Hence, he is relaxed as he checks for upcoming releases.
Therefore, news that might affect his trading day. What is Pre Market NSE.
Hence, It is clear which one of these traders has the advantage.
Therefore allow that consistency to be a positive force in your trading.
Rest and Relaxation What is Pre Market NSE.
Here, Sleep and rejuvenation is a rule for any trader who wants to succeed in the long term.
And the rest that a trader gets can often define trading performance.
Therefore, besides the physicality, many aspects of trading mirror sports performance.
Moreover, high performers in both areas need proper rest. What is Pre Market NSE.
Here, Celebrating success and the occasional post celebratory hangover is fine.
Hence, But make sure that you have a proper regiment of rest planned.
Therefore, this consistent time to rest and renew will help you trade at your best on a regular basis.
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