who trades during pre-market session

Hello there,

I have been googling like mad, but still not able to understand who trades during the pre-market session? We, retail investors, are not allowed to but are institutional investors (pension funds, hedge funds etc) allowed to?


cheers

I hv heard that very seniors floor traders are only allowed to trade during pre-market hours.

I had an A/c with HDFC Sec and had placed/traded quite a few orders in the Pre Market session.

IIRC, I wasnt able to place orders using Margin ... Only Cash orders were allowed.

Hope this helps.

Hello Mate,
I could actually speak about what i have seen at Frankfurt. There are some power brokers present at the floor(market makers). What they do pre-market is .. select x number of orders (buy and sell) from the order book which represent the highest price at the best volume (imagine liquidity) .. for this reason when we look at a NIFTY share ABC , the market maker will execute 100 000 ABC @ 1200Rs rather than executing your 100 ABC @ 1210Rs .. this is probably the reason why ur orders dont get executed.

If i am wrong, id be glad if someone corrects me.

http://www.nseindia.com/live_market/dynaContent/live_watch/pre_open_market/pre_open_market.htm

Click on information tab.

Who trades Pre-market ?
anyone interested. Retail too.
CNC orders accepted - meaning orders w/o margin.
and disclosed quantity and purchase qty ought to be same.

http://www.nseindia.com/live_market/dynaContent/live_watch/pre_open_market/PreOpen-October2010.pdf

well explained..