Before the market opens, there is a period known as pre market. During pre market trading, prices are set between 8:00 a.m. and 9:30 a.m. EST. Before the regular trading session begins, traders and investors closely monitor pre-market activity to gauge the direction and strength of the market.
The pre market landscape
In pre market trading, there is little liquidity and volume, so the bid-ask spread is wide. While retail brokers may offer pre market trading, some of their orders may not be accepted. On weekdays, direct access brokers typically start trading before 4:00 a.m. Eastern Standard Time.
There are usually no big market moves in the early morning unless there is significant news to report. Prices are usually low because liquidity is low.
After-hours trading was introduced before pre-market trading by the regulators. The New York Stock Exchange introduced pre market trading during the technological revolution that resulted in the creation of the Internet, which ran from 4 a.m. until 9:30 a.m.
Investing in pre markets can help you gauge the market’s reaction to news releases before they are released to the rest of the market. In the pre market, perceptions of strength and weakness are usually distorted because real volume becomes apparent as soon as the market opens.
SeaChange International Inc. (SEAC) shares were rising 19.87% to trade at $1.81 in pre-market at last check. SEAC’s stock lost -12.21% to close Tuesday’s session at $1.51. The stock volume remained 124.21 million shares, which was higher than the average daily volume of 4.53 million shares within the past 50 days. SEAC shares have risen by 70.85% over the last 12 months, and they have moved up by 121.18% in the past week. Over the past three months, the stock has gained 41.12%, while over the past six months, it has added 36.04%. Further, the company has a current market of $72.50 million and its outstanding shares stood at 48.49 million.
At last check in pre-market trading, shares of Exicure Inc. (XCUR) were up 16.55% at $0.295. XCUR’s stock closed last session at $0.25, decreasing -6.29% or -$0.02. Shares of the company fluctuated between $0.2476 and $0.4069 throughout the day. The number of shares exchanged was 47.3 million, greater than the company’s 50-day daily volume of 1.49 million and higher than its Year to date volume of 1.24 million. In the past 12 months, the company’s stock has retreated -83.01%, and in the last one week, the stock has moved down -41.83%. For the last six months, the stock has lost a total of -84.75%, and over the last three months, the stock has decreased by -81.25%. The stock has returned -85.70% so far this year.
Galera Therapeutics Inc. (GRTX) shares have gained 7.04% at $2.89 in Wednesday’s premarket session. Galera Therapeutics Inc.’s stock added 95.65% to finish last trading session at $2.70. The stock recorded a trading volume of 279.45 million shares, which is below the average daily trading volume published for the last 50 days of 9.48 million shares. The shares of Galera Therapeutics Inc. have advanced 98.53% in the last five days; however, they have gained 56.98% over the last one month. The stock price has shed -62.40% over the last three months and has lost -73.61 percent so far this year.