In pre-market trading, trades are made before the main market session opens. Pre-market trading is typically done between 8:00 a.m. and 9:30 a.m. EST. Market participants and traders follow pre-market activity to gauge the strength and direction of the market prior to a regular trading session.
What you need to know about pre market?
Typically, pre market trading is low-volume and low-liquidity, so there is a large bid-ask spread. Pre market trading is offered by retail brokers, but it is sometimes limited to certain orders. Brokers with direct access to the market typically have access to pre-market trading by 4:00 am EST on weekdays.
Unless there is news to report, most stocks are relatively quiet this early in the morning. Stubby quotes, indicating low liquidity, are typical.
The introduction of after-hours trading preceded the introduction of pre-market trading. Assisted by developments in computer technology and the Internet, the New York Stock Exchange extended the time it allows for pre-market trading to 4 a.m. until 9:30 a.m.
Taking part in pre market trading offers you the chance to stay on top of market reaction before the rest of the market opens. But keep in mind that as soon as the market opens, real volume enters the picture, so perceptions of strength and weakness are often misleading.
RLX Technology Inc. (RLX) shares were rising 12.65% to trade at $4.63 in pre-market at last check. RLX’s stock lost 0.00% to close Wednesday’s session at $4.11. The stock volume remained 21.06 million shares, which was higher than the average daily volume of 11.21 million shares within the past 50 days. RLX shares have moved down by -17.30% in the past week. Over the past three months, the stock has lost -23.32%, while over the past six months, it has shed -62.19%. Further, the company has a current market of $5.36 billion and its outstanding shares stood at 1.39 billion.
Phunware Inc. (PHUN) has advanced 29.54% at $4.21 in pre-market trading hours on the last check Thursday. The stock of PHUN gained 11.68% to complete the last trading session at $3.25. The price range of the company’s shares was between $2.78 and $3.26. It traded 43.76 million shares, which was above its daily average of 20.01 million shares over 100 days. PHUN’s shares have dropped by -3.56% in the last five days, while they have lost -15.14% in the last month.
At last check in pre-market trading, shares of Arbutus Biopharma Corporation (ABUS) were up 14.97% at $5.3. ABUS’s stock closed the last session at $4.61, increasing 44.06% or $1.41. Shares of the company fluctuated between $4.13 and $6.50 throughout the day. The number of shares exchanged was 322.13 million, greater than the company’s 50-day daily volume of 8.41 million and higher than its Year to date volume of 3.47 million. In the past 12 months, the company’s stock has advanced 15.54%, and in the last week, the stock has moved up 47.76%. For the last six months, the stock has gained a total of 56.27%, and over the last three months, the stock has increased by 34.01%. The stock has returned 29.86% so far this year.