when the market opens the next day this large amount of limit or stop orders placed at prices different from the prior day s closing price causes a discrepancy between supply and demand this causes the opening price to move off the previous day s close toward prices corresponding to the overnight changes 
while predicting stock prices has led to financial ruin for even the best investors there are some ways to gauge a market s opening direction the most obvious is to review the after hours or premarket activity some investors trade shares outside the stock market s regular trading hours though the volume traded is almost always lower if a stock increases in value after hours and there s no significant news overnight there s a good chance the stock will have an opening price above the previous day s closing price the same applies of course if it decreases overnight premarket trading happens before the market opens so the price at which premarket trades occur can also be a helpful way to predict the opening price many investors also review what s happening in international markets to gauge how the opening will go trading hours vary from country to country but typically align with regular work hours for example in japan trading occurs from 9 a m to 11 30 a m and 12 30 p m to 3 p m local time that is it opens at 7 p m and closes at 1 a m eastern time 2while many factors influence the prices of stocks across different markets if another country s markets rose while the american stock market was closed investor sentiment is often that the american market is likely to open higher than its closing price opening price trading strategiesthere are several day trading strategies based on the opening of a market when the opening price is quite different from the prior day s close that creates a price gap day traders use a strategy known as the gap fade and fill traders try to profit from the price correction that usually occurs when there s a sizable price gap at the opening another popular strategy is to fade a stock showing strong premarket indications contrary to the rest of the market or similar securities when a disparity is present from premarket signals a trader waits for the stock to move at the open going against the rest of the market the trader then takes a position in the stock in the market s general direction when the momentum and volume of the initial contrasting stock price movement diminishes when done correctly these are high probability strategies designed to achieve quick small profits opening price exampleon jan 10 2024 the opening price for apple aapl was 184 70 the stock rose to a high of 186 36 but it closed at 186 19 3can you buy a stock at opening price yes it s possible to buy a stock at its opening price if you place a market on open order to buy a stock before the market opens you ll buy shares at the opening price 