What is Pre-Open market session?

The Pre-Open Session: Enhancing Market Stability in NSE and BSE
By Gurpreet
The NSE and BSE introduced the concept of the pre-open session to reduce the volatility of securities and provide better price discovery in the markets. Pre-market sessions are conducted on a daily basis at the exchange.
The pre-open market session lasts for 15 minutes from 9 AM to 9:15 AM and is divided into three parts:
- Order Collection: In the first 8 minutes, orders are placed, modified or canceled. One can place only limit orders or market orders. The order collection window can close at any time between 9:07 AM and 9:08 AM.
- Order Matching: In the next 4 minutes, price discovery will be done, and orders will be executed.
- Buffer Period: The last 3 minutes are used to facilitate the transition from pre-open to regular session.
After the closure of the collection window to 9.15 AM new orders cannot be placed. The orders placed are matched and trades are confirmed.
One can place orders only in the cash segment. Stop Loss orders are not allowed. Finally, The orders that have not been traded are carried forward to the normal trading session. Detailing on such orders below:
- Limit Orders that are not traded during Pre-Open Session will be moved to normal trading sessions at the same price.
- Market Orders that are not traded during the Pre-Open session will be moved to the normal trading session at the Opening Price.
Share this post
-
Taxation Simplified for Traders
March 21, 2024
-
The daily expiry: Profiting from volatility is done & dusted
December 25, 2023
-
Stock Trading: The Best Side Hustle in India !
October 5, 2023
South Asian Stocks Ltd. : NSE Member Code 09073, BSE Member Code 6329, MCX Member Code : 55215 , NCDEX Member Code : 1233 NSDL : IN-DP-474-2020 . SEBI Registration No. INZ000164738
Compliance Officer: NSE,BSE,MCX,NCDEX,NSDL : Mr RK Jain , 011-40409999 support@stocko.in
Registered Office : 3rd Floor, Building No.5, Local Shopping Complex, Rishabh Vihar, Near Karkarduma Metro Station. East Delhi – 110092
For any complaints related to South Asian Stocks Ltd email at complaints@stocko.in
Please ensure you carefully read the risk Disclosure Document.
Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective communication, Speedy redressal of the grievances