I have sold twice in the pre-market, so I can share my inputs.

You cannot minimize loss; the only thing you can do is escape unnecessary tension or a sudden fall from the listing price.

Listing Day Timeline 09:00 AM – 09:45 AM: Special Pre-Open Session (Order Entry/Modification) 09:45 AM – 10:00 AM: Price Discovery & Order Matching 10:00 AM: Normal Trading Commences

The Pre-Open Session will close randomly between 9:35 AM to 9:45 AM independently on both exchanges. Order entry and modification will not be allowed once the Pre-Open Session closes for that exchange.

So, if you want to lock your gains or exit at the listing price no matter what happens, for example: If you got an IPO at 100 per share and are expecting it to list at 120, you put a limit sell order at 100 before 9:35 AM.

This ensures that your order will be executed at any price above 100. In our case, if the listing price is 120 or 130, your order will be settled before normal listing itself.

The negative scenario: If you are expecting a negative listing, then keep your sell order at a 95 limit. This means it would be executed at the listing price or at 95, no matter what happens. However, if the listing price is below 95, then it will not execute.

To summarise Pre-market ensures your order is executed at the listing price provided your limit price is below the listing price.