Trading the futures market is really advantageous for traders that want to trade the US market where a lot of liquidity lies. Or alternatively take advantage of those moves in the futures market. You can use the news events that happen before the market opens to gauge what the market may do when it opens. The futures market is where premarket trading is done. Which could cause slippage and poor fills. However it is not a big crowd arena, there are not that many participants premarket. There are some stragglers and there are higher liquidity assets. There are some orders and trades in the mix but they do not trade with much liquidity pre-market. That doesn’t mean that some of the trading stops before and after. The stock market typically opens at 9:30 am EST and closes at 4:00 PM EST. Because many brokers may not offer the option. When compared to the futures market.Īnother reason we tend to shy away from pre-market stock trading. The orders on the stock market have a wider spread in general. Stocks, to begin with, have less liquidity than the futures market overall. Pre-market Stock Trading.ĭo people trade stocks pre-market? The simple answer is yes, the better answer is, you shouldn’t as a newer trader. It’s rare to have an empty latter on the best bid and best offer.
The futures market has immense liquidity in the evening. However, we like to trade the futures market more so than other markets. There are some brokers that allow some pre-market and post-market trading for stocks and options. Typically opening at 9:00 am and closes at 4:00 PM EST. Like the US stock market and the US options market. Then there are those that close at a specific hour and re-open. There are assets that are open throughout all hours like Forex and Futures markets. There are many products out there that we could potentially trade pre-market. It’s often a mistake that traders thing you can only trade when the market is open but there are specific products that are open earlier or around the clock for that matter that traders can take advantage of.
Did you know that you can make big money from premarket trading? There is a great opportunity before the market even opens to jump in and find those large moves.
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