US Stock Market Futures: A Guide to Pre-Market Trading and Investment Strategies

US Stock Market Futures: A Guide to Pre-Market Trading and Investment Strategies

What is pre-market trading?

It’s akin to buying something even when a shop is closed! Pre-market trading is when you can complete trading before a stock market opens. Pre-market trading is only possible through an “electronic market”, such as an alternative trading system (ATS) or electronic communication network (ECN). Plus, it only works for a limited number of orders. Even when the US Stock market is closed, one can invest in top-tier US brands (like Apple) at the most competitive exchange rates through Fi Money. Consequently, you can own stock in companies like Google, Tesla, Microsoft, and more! 

Pre-market trading typically occurs every trading day between 8 AM and 9.30 AM EST. Many investors and traders follow the pre-market trading activity to assess the market’s strength and direction ahead of the regular trading session.

Futures contracts get traded often. The number of contracts traded rises when significant markets like New York and London open. It’s because institutions and traders start aggressively trading in time zones similar to their own or those nearby.

One needs trading volume and price movement to be a successful day trader in the US stock market future. Both of these frequently happen as a market opening draws near. Consider the E-mini S&P 500 (ES), which monitors the Standard & Poor’s 500 Index and opens the stock market at 9.30 AM Eastern time. The E-trading mini’s activity tends to increase an hour or so before the market opens. At 9.30 AM, there is a spike in both volume and volatility, which tends to persist for two hours.

Every future trader should be familiar with these investment strategies

Develop a trading plan

Golden words to trade by: ‘Before taking a position, thoroughly plan your trades’. It entails creating an exit strategy — consider it a contingency plan if the deal does not turn out as expected.

Reduce the likelihood of making tough choices when you’re already in the market and putting your money at risk.

Safeguard your positions

One needs to consider using stop-loss orders when trading to strengthen their commitment. Translation: Choose a bailout-level price. Activate a trade stop command if the stock ever hits that price.

When using One-Triggers-Other (OTO) commands, you can simultaneously place a ‘primary order’ and a ‘protective stop’. The protective stop is activated automatically when the original command gets fulfilled. By doing this, one can stop worrying about submitting their stop order at the appropriate time and can avoid having to monitor the market constantly.

Narrow your focus, but don’t overdo it!

Most traders struggle to stay on top of multiple markets! It is advisable to avoid overextending oneself by attempting to track and trade numerous markets. Always remember trading futures involve a significant time and energy commitment. Even the most seasoned traders sometimes find it challenging to keep up with news, read market commentary, and analyse charts.

Maintain a steady pace when trading

Avoid the rookie mistake of utilising all the funds in your account to buy or sell as many futures contracts as you can. Although some drawdowns are unavoidable, one should avoid building a sizeable position. If you’re new to futures trading, it is crucial not to go full throttle! There’s no need to simultaneously trade five or ten contracts in the initial stages. 


Determining what works best for you and testing strategies is crucial —especially keeping track of pre-market gains when one closes out deals before the market opens. Or when one keeps those trades until the market reaches its exit. Over several months, you will have a pretty clear idea of what the US Stock market looks like and how it works. Fi Money, which works with regulated US brokerages like Alpaca, simplifies the world of US Equities with an easy-to-use interface. 

In addition to in-app explainers, Curated Collections (like All-Time Favourites) can help novice investors decide where to place their funds. Experienced investors can deep dive into US Stocks, use numerous filters (such as stock price), and choose from various Blue Chip companies with Trillions in market cap. Moreover, the Fi app has 0% commission, 0 brokerage charges & 0 withdrawal fees.