What is the difference between pre-market trading and intraday trading? Introduction to the difference between pre-market trading and intraday trading

Detailed explanation of "pre-market trading" in the currency circle: Avoid trading peaks and make arrangements in advance?

In cryptocurrency trading, "pre-market trading" refers to trading activities conducted before the exchange is officially opened, allowing investors to buy and sell specific digital assets in advance. In contrast, "intraday trading", that is, trading activities after the exchange is officially opened. The main differences between the two are trading time, trading volume and market liquidity.

Difference between pre-market trading and intraday trading:

• Trading time: Pre-market trading occurs before the exchange officially opens, usually a few hours; intraday trading occurs after the opening, usually the most active trading period of the day.
• Trading volume and liquidity: The trading volume of pre-market trading is relatively low and the liquidity is poor because there are fewer participants; intraday trading is large intraday trading and high in liquidity.
• Price fluctuations: Due to low liquidity, the price fluctuations in pre-market trading may be greater and are more susceptible to breaking news or events; the price fluctuations in intraday trading are relatively small, and the market is more stable.

Comparison between pre-market trading and regular trading:

The main differences between pre-market trading and conventional trading (i.e. intraday trading) are the following aspects:

1. Trading time: The pre-market trading time is limited, before the official trading begins; the regular trading time is longer, covering the entire opening time of the exchange.
2. Market liquidity: Pre-market trading liquidity is low, and the participants are mainly institutional investors and professional traders; regular trading liquidity is high, and all investors can participate.
3. Price fluctuations: Pre-market trading price fluctuations may be greater, and it is more significantly affected by external factors; the fluctuations in conventional trading prices are relatively flat.
4. Participants: Pre-market trading participants are relatively limited; regular trading participants are wide, covering individual and institutional investors.

In short, pre-market trading provides investors with an opportunity to make arrangements in advance, but they need to be cautious about their lower liquidity and greater price volatility risks. Investors should choose the appropriate trading period based on their own risk tolerance and investment strategy.

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