The pre-market is the period before the opening of the main market session. Usually, premarket trading takes place between 8:00 a.m. and 9:30 a.m. EST. Before the regular trading session begins, traders and investors closely monitor the pre-market activity to gauge the market’s direction and strength.
A look at pre-market
As a result of low volume and liquidity, the bid-ask spreads tend to be large during pre-market trading. A retail broker may offer premarket trading, but the type of orders which may be accepted may be limited. Most direct-access brokers are able to conduct pre-market trading by 4:00 am EST on weekdays.
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Unless there is news to report, most stocks are quite early in the morning. Quotes are usually stumpy, which indicates limited liquidity.
In addition to pre-market trading, after-hours trading was also introduced. After the invention of the Internet and the development of computer technology, the New York Stock Exchange established pre-market trading from 4 a.m. to 9:30 a.m.
Before the rest of the market opens, you can gauge how the market will react to news releases when you trade pre-market. When the market opens, the real volume becomes apparent, so perceptions of strength and weakness become erroneous.
Phunware Inc. (PHUN) shares were rising 11.22% to trade at $3.37 in pre-market at last check. PHUN’s stock lost -13.43% to close Friday’s session at $3.03. The stock volume remained 17.23 million shares, which was lower than the average daily volume of 40.75 million shares within the past 50 days. PHUN shares have risen by 330.40% over the last 12 months, and they have moved down by -8.73% in the past week. Over the past three months, the stock has gained 170.54%, while over the past six months, it has added 107.53%. Further, the company has a current market of $336.91 million and its outstanding shares stood at 74.35 million.
At last check in pre-market trading, shares of Ardelyx Inc. (ARDX) were up 3.95% at $1.58. ARDX’s stock closed the last session at $1.52, decreasing -10.59% or -$0.18. Shares of the company fluctuated between $1.46 and $1.92 throughout the day. The number of shares exchanged was 146.65 million, greater than the company’s 50-day daily volume of 15.35 million and higher than its Year to date volume of 10.28 million. In the past 12 months, the company’s stock has retreated -74.83%, and in the last week, the stock has moved up 70.31%. For the last six months, the stock has lost a total of -78.32%, and over the last three months, the stock has increased by 5.56%. The stock has returned -76.51% so far this year.
Remark Holdings Inc. (MARK) shares have gained 8.41% at $1.16 in Monday’s premarket session. Remark Holdings Inc.’s stock subtracted -10.08% to finish the last trading session at $1.07. The stock recorded a trading volume of 4.93 million shares, which is below the average daily trading volume published for the last 50 days of 22.38 million shares. The shares of Remark Holdings Inc. have retreated -17.69% in the last five days; however, they have lost -39.55% over the last month. The stock price has shed -23.57% over the last three months and has lost -43.68 percent so far this year. Further, the stock is being traded at a price-to-earnings ratio of 1.80. Additionally, it has price to sales ratio that stands at 8.69.