NSE’s New Pre-Open Session Blueprint: Key Details Every Trader Must Know
Order Entry Period (9:00 AM – 9:08 AM)
- Traders can place, modify, or cancel orders during this phase.
- A system-driven random closure will occur between the 7th and 8th minute.
- The random closure for the equity and equity derivatives segments will be independent of each other.
Order Matching & Trade Confirmation (9:08 AM – 9:12 AM)
- The system will determine the opening price based on the equilibrium price.
- Orders will be matched and confirmed at this determined price.
Buffer Period (9:12 AM – 9:15 AM)
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Serves as a transition phase between the pre-open and continuous trading session.
Eligible Contracts
- Applicable to current-month futures on stocks and indices.
- In the last five trading days before expiry, it will also cover next-month futures contracts.
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Not applicable to:
- Far-month (M3) expiry contracts
- Spread and option contracts (indices And stocks)
- Futures on ex-dates due to corporate actions
Market Parameters
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All market parameters remain identical to the normal market, including:
- Tick size
- Lot size
- Price bands
Trading Session Mechanics On New NSE Pre Opening
The pre-open session consists of two broad parts:
Order Collection Period
- Traders can enter, modify, or cancel orders.
- Both limit and market orders are allowed.
- Stop loss and IOC orders are not permitted.
- Indicative prices, equilibrium data, and demand-supply statistics will be displayed in real time.
Order Matching Period
- Orders are matched at a single equilibrium price, which becomes the opening price.
- The defined matching sequence is as follows:
- Limit orders with limit orders
- Residual limit orders with market orders
- Market orders with market orders
- During this period, no order modification or cancellation is allowed.
Margin Validation And Capital Sufficiency
Margin validation will also be critical before any trade can transact in the new pre-open session of NSE. All the orders that are made within this 15-minute period will be screened to make sure that the traders have sufficient capital to meet the required margins. In case the funds that a trader has are not enough to meet the required margin, the order is rejected automatically before it enters the system.
As explained by NSE, this action will ensure that there is responsible trading and integrity of the market as excessive leverage or speculative positioning before the actual market opening is prevented.
(With Inputs From ANI)
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