Opening Price
Quick Definition
The price at which a stock first trades when the market opens for the day, determined by pre-market supply and demand.
Key Takeaways
- The opening price is the first traded price when markets open at 9:30 AM ET.
- It is determined by an auction matching pre-market orders.
- Gaps between closing and opening prices signal overnight sentiment shifts.
What Is Opening Price?
The opening price is the first traded price of a security when the stock exchange begins its regular trading session. For U.S. markets, the regular session opens at 9:30 AM Eastern Time. The opening price is determined through an opening auction process where buy and sell orders accumulated during pre-market hours are matched to find the equilibrium price. The opening price can differ significantly from the previous day's closing price due to overnight news, earnings releases, economic data, or global market movements — this difference is called a "gap." Opening prices are important for technical analysts who study gap patterns, and for traders using opening range breakout strategies. The opening period (first 30 minutes) typically sees the highest trading volume and volatility of the day as overnight orders are executed and institutional traders establish positions.
Opening Price Example
- 1Tesla gapped up 12% at the opening price after reporting better-than-expected earnings overnight.
- 2The opening 30 minutes of trading typically accounts for 20-25% of daily volume.
Related Terms
Closing Price
The last traded price of a security when the market closes for the day.
Gap (Price Gap)
A discontinuity on a chart where a stock's price jumps between two trading sessions with no trades in between.
Market Order
An order to buy or sell a security immediately at the best available current price.
Bid Price
The highest price a buyer is currently willing to pay for a security — it is the price you will receive if you sell immediately.
Ask Price
The lowest price at which a seller is willing to sell a security, also known as the offer price — it is the price a buyer must pay to purchase immediately.
Stock
A security representing ownership in a corporation, entitling the holder to a share of profits and voting rights.
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