How does a person pre-market trade?

[anestelen]

I am constantly reading about a stock being down in pre-market trading and always wondered how does a person trade when the market is closed. Someone first answered with a definition as to what pre-marketing was....that's not what I'm asking. I'm asking how does one get the capability to do this.

 

[DionysusToast]

Just get a broker that lets you do it. Most do. Who's your broker now ?

My broker only lets me do it with limit orders - which considering the lack of liquidity is fair enough in most cases.

 

[montmorencyt2w]

So what was that definition of pre-market then?

 

[Mr. Charts]

Hi Mike,
Trading starts hours before market open but picks up in the hour or so before. Often trading is thin and illiquid unless some news has affected the stock. The ECNs accept limit orders and it's wise to use them both pre- and post-market to avoid bad fills.
And yes, there is post-market trading too.
Personally I rarely trade pre-market but occasionally post market. Again that is news related, often results. There can be clear trends to jump on and you can see the trades printing off.
HTH
Richard

 

[DionysusToast]

one would presume he's referring to 8am-9:30am trading stocks

 

[montmorencyt2w]

Thanks Richard and DT.

I was looking back in your main thread to see some of the things said about pre-market, including where you say you look for the movers in pre-market as an early indication.

Presumably you then carry on looking during the actual market.

How early (GMT) do you normally start looking?

Many thanks,
Mike