I'm in Australia.
As far as I'm aware, the US market opens from 0030 to 0700 AEDT my time.
IG allows us to trade pre and post market close to 3-5 hours before and post this time. How is this possible?
I'm assuming we are not actually trading on the actual exchange at NYSE/NASDAQ during this time, and are basically trading in a smaller group of traders on the actual brokerages that IG uses, sort of like CXXT or internal trades amongst other traders using IG or IG's intermediary? - as a result I would believe there is less liquidity and once the official market opens we would have more volume in this respect.
I noticed this is also only with certain shares, i.e. that All Sessions shares which I assume is due to the fact that these shares have enough trading volume during the normaly tradying day to warrant to be able to be traded pre and post market?