Jump each morning

Hey all

Sorry if this has already been explained. When market opens each morning at 8 am it often jumps up or down in a few percent …last couple days it’s been upward by around 4% . Why is this? ( are the trading hours different ? )

Thanks

Its usually determined with the before hours trading. These are more volitile because there are less people who have access to it (lots more reasons but theres plenty of pages online explaining before hour trading). It’s especially helpful for CFD trading as the jumps can mean that you can ‘day trade’, but I belive it requires the pro version of T212 :slight_smile:

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market open volatility is a result of brokers, platforms and institutions processing pending orders at the instant the market opens that have accumulated since market close.

before-market hours will adjust the base price the market will open at which can cause gapping, but then all the orders getting executed at once means there is a lot of backlogged orders that are suddenly being triggered and fulfilled. to avoid this it’s usually advised to wait about 15 minutes from market open for things to stabilise.