Pre Market Trading Nyse - Explain NASDAQ For Beginners

Nov. 7, 2010 - PRLog -- Pre Market Trading Nyse

In order to explain NASDAQ for beginners, it is important to first understand how the stock market works. Once, the investor understands this process, it becomes very easy to relate to different terms like NASDAQ, NYSE, securities, S&P 500, Dow Jones etc. The acronym for NASDAQ stands for 'National Association Of Securities Dealers And Automated Quotations'.

From the above acronym, we can make out that NASDAQ is an association wherein the quotes of stocks being traded in the stock market are sent to the dealers in an automated manner. The dealers can then make use of these real time quotes to make buy or sell decisions. NASDAQ is a completely online trading system. Unlike New York Stock Exchange (NYSE), there is no trading which happens physically on the exchange floor. This also eliminates the need of jobbers and other market makers since the dealers can trade directly online.

American Stock Exchange was later acquired by the NASDAQ which made NASDAQ the largest trading system in the world in terms of number of trades taking place in a day. NASDAQ is also popular among the traders because it has more technology and technology related stocks than any other exchange. Like any other exchange, NASDAQ has its own indices in the exchange. The most popular indices out of those are NASDAQ 100 and NASDAQ Q. The other indices which compete with NASDAQ index are S&P 500 and DOW Jones though they represent a broader set of companies within the United States of America. There are set rules and regulations which need to be followed before a company can be listed on NASDAQ though these rules are not as stringent as those present for NYSE. Get your Pre Market Trading Nyse @ http://slackers-trading3.blogspot.com/?tid=prlog061110 and be Successful forever!

Other things of interest about NASDAQ are the indicators called NASDAQ 100 pre-market indicator and NASDAQ 100 after-hours indicator. As the names suggest, the NASDAQ 100 pre market indicator is calculated using the last traded prices of the security in the times between 8.00 AM - 9.30 AM EST while the NASDAQ after-hours market indicator is given about in the time 4:00 PM - 6.30 PM EST.

These two indicators can provide a good picture of the market trading before and after hours of market hours trading. It is recommended that beginners use caution while making inferences from these indicators. On the other hand, these indicators become very handy for seasoned and professional traders and investors. Get your Pre Market Trading Nyse @ http://slackers-trading3.blogspot.com/?tid=prlog061110 and be Successful forever!

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