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Pre-market

Trading Term

Pre-market trading refers to the buying and selling of stocks before the official market hours, typically between 4:00 a.m. and 9:30 a.m. Eastern Time. This period allows investors to react to news events and economic indicators released outside regular trading hours. Pre-market activity can provide insights into market sentiment and potential price movements for the day. However, it is characterized by lower liquidity and higher volatility, which can lead to wider bid-ask spreads. Investors should exercise caution and consider these factors when making pre-market trades, as they can significantly impact investment strategies and outcomes.

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