Premarket trading definition
Premarket trading is a stock trading activity that takes place outside official market hours, typically between 4 a.m and 9:30 a.m Eastern time in the U.S. or as specified by your brokerage. Premarket trading allows investors to react to news events outside regular business hours and place a trade between 4 a.m. and 9:30 a.m.
Most U.S. markets are open from 9:30 a.m. to 4 p.m. Eastern time. Premarket trading is also known as extended-hours trading and electronic trading hours, or ETH.