Why the USA Has a Long Pre-Market Session?
India's pre-market runs from 9:00 AM to 9:15 AM IST — just 15 minutes. But in the U.S., the pre-market starts at 4:00 AM and goes until 9:30 AM ET, which is 5 and a half hours.
Why is there a big time difference in pre-market sessions?
India's pre-market is just 15 minutes, while the U.S. has 5.5 hours is due to differences in market infrastructure, regulations, and investor behavior.
Why India's Pre-Market is Only 15 Minutes?
Purpose is Limited: The Indian pre-market (9:00–9:15 AM IST) is not for actual trading of large volumes.
Low Retail and Institutional Interest: Indian retail and institutional investors prefer to trade during regular hours.
Regulatory Approach: SEBI and Indian exchanges are conservative with after-hours and extended trading to avoid unnecessary volatility and risks.
Risk Management: A short pre-market helps reduce risk from overnight global events while providing time to adjust before the main session.
Why the USA Has a Long Pre-Market Session?
More Advanced Market Structure: U.S. markets (NYSE, NASDAQ) support electronic trading via ECNs, allowing trades to occur before the official open.
High Institutional Activity: Institutional investors, hedge funds, and large players often trade in pre-market to act on news, earnings, and global events.
Global Financial Hub: U.S. markets are influenced by overnight global news (Asia, Europe), so pre-market trading gives a head-start on adjusting positions.
Brokerage Support: U.S. brokers widely support pre-market trading with infrastructure and demand to match, unlike in India where most brokers limit access to just regular hours.