### Definition of Pump:
A pump is a term used in trading markets to refer to the process of artificially and rapidly raising the price of an asset (such as a stock or cryptocurrency) through a large amount of buying. This is often followed by what is known as a “dump,” where the initial speculators who drove the price up sell large amounts of the asset to make a profit, causing the price to collapse.
Pumping and dumping is an illegal practice in traditional financial markets, but it is common in some cryptocurrency markets.
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### Pre-Market Trading:
Pre-market trading is trading that occurs before the official market opens.
During this period, buy and sell orders are executed at specific hours that vary according to the stock exchange.
- Benefits:
- Investors can respond to news and financial reports published before the market opens.
- Allows you to determine the direction in which the market may go once it opens.
- Risks:
- Low liquidity, making it difficult to execute large orders.
- Higher price volatility due to fewer participants.
Pre-market trading is beneficial for experienced investors but requires caution.