Pre-Market Trading: How It Works, Benefits, and Risks
Introduction to Pre-Market Trading Pre-Market trading is a session that takes place before regular market hours, allowing investors to place orders and trade stocks before the market officially opens. This session provides an opportunity for investors to react to news and events that may have occurred after the market closed the previous day. In this blog, we will discuss how Pre-Market trading works, its benefits, risks, and strategies to help you make informed decisions. How Pre-Market Trading Works Pre-Open Session Timings: The pre-open session on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) takes place from 9:00 AM to 9:15 AM, divided into three slots: 9:00 AM to 9:08 AM : Order Entry Period 9:08 AM to 9:12 AM : Order Matching and Trade Confirmation Period 9:12 AM to 9:15 AM: Buffer Period Order Types: During the pre-open session, investors can place the following types of orders: Limit Order : An order to buy or sell a stock at a specific price or ...