Exactly what is premarket trading?

The pre-market refers to a period before the regular trading session when trading occurs. Premarket trading typically occurs between 8:00 a.m. and 9:30 a.m. EST. Investors and traders monitor pre-market activity before the regular trading session to determine the strength and direction of the market.

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Understanding the premarket

Pre-market trading is typically low volume and low liquidity, which leads to large bid-ask spreads. There are a number of retail brokers who offer premarket trading, but some brokers limit it to certain types of orders. Brokers with direct access to the market can generally trade pre-market as early as 4:00 a.m. Monday through Friday.

You should be aware that most stocks have less activity early in the morning unless there is major news to report. There is very little liquidity in most stocks at that time.

Trading after hours was introduced before premarket trading. With the introduction of the Internet and the rise of computerization, the New York Stock Exchange slowly extended its trading hours to allow premarket trading between 4 a.m. and 9:30 a.m.

Naked Brand Group Limited (NAKD) shares were rising 1327.98% to trade at $6.88 in pre-market at last check. NAKD’s stock lost -3.76% to close Tuesday’s session at $7.23. The stock volume remained 5.6 million shares, which was lower than the average daily volume of 56.76 million shares within the past 50 days. NAKD shares have risen by 154.92% over the last 12 months, and they have moved down by -9.91% in the past week. Over the past three months, the stock has lost -19.51%, while over the past six months, it has shed -28.09%. Further, the company has a current market of $5.65 billion and its outstanding shares stood at 781.70 million.

At last check in pre-market trading, shares of BioRestorative Therapies Inc. (BRTX) were up 54.27% at $7.05. BRTX’s stock closed the last session at $4.57, decreasing -1.51% or -$0.07. Shares of the company fluctuated between $4.38 and $4.7299 throughout the day. The number of shares exchanged was 4.1 million, greater than the company’s 50-day daily volume of 0.25 million and higher than its Year to date volume of 58430.0. In the past 12 months, the company’s stock has retreated -79.96%, and in the last week, the stock has moved down -6.35%. For the last six months, the stock has lost a total of -84.87%, and over the last three months, the stock has decreased by -64.85%. The stock has returned -83.44% so far this year.

American Virtual Cloud Technologies Inc. (AVCT) is rising on the charts today, up 31.18% to trade at $2.44 at last check in premarket trading. On Tuesday, shares in American Virtual Cloud Technologies Inc. rise 22.37% to close the day at $1.86. The volume of shares traded was 32.82 million, which is higher than the average volume over the last three months of 11.80 million. During the trading session, the stock oscillated between $1.47 and $1.95. The company had an earnings per share ratio of -4.06. AVCT’s stock has gained 52.46% of its value in the previous five sessions and moved 10.71% over the past one month, but has lost -74.17% on a year-to-date basis. The stock’s 50-day moving average of $1.8835 is above the 200-day moving average of $4.4844. Moreover, the stock is currently trading at an RSI of 53.42.

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