What can you learn from Market Depth before the market opens?
Before the market opens at 10 a.m., the period from 7 a.m. until the opening is known as the Pre-Open. During the Pre-Open, you can place trades in anticipation of the market opening at 10 a.m.
Equilibrium Price
The Equilibrium Price is only available before the market opens, and it is the point at which the bid and ask orders match at a particular price.
This is the Indicative Match Price before the market opens, and the match occurs.
The Equilibrium Price serves as a reference point guiding future transaction pricing.
It evaluates asset valuation before trading, signaling whether it’s overvalued, undervalued, or appropriately priced.
Auction and Surplus Volume
Auction Volume is the volume traded at the auction match price.
Surplus Volume is the imbalance volume of orders included in the market match, showing the surplus amount difference between the bid and ask.
Count and Quantity
The Count refers to the number of orders at that price point.
The Quantity is the total volume of the orders at that price point.
If the Bid has a Quantity of 3,931, it comprises the total of 3 orders in the Count. 
The Bottom Line
Market depth before the market opens strongly indicates the price direction of the stock before trading begins.
Understanding:
- The Equilibrium price indicates the price at which bids and asks will match.
- Which side has higher volume: bids or asks?
- The number of orders at each price step can indicate strength.
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How to find where the market depth?
Read More
You can download the offline guide here Understanding Market Depth Before The Open
What you learn here has been used in our Trade for Good software.
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