The National Stock Exchange has rolled out a pre-open session for the Futures & Options segment starting today, marking a key structural update to derivatives trading. The move is aimed at improving price discovery, liquidity, and stability during market opening.
Key Highlights of the New Pre-Open Window
- Coverage: Applicable to index and stock futures (near-month contracts only). During the last 5 trading days, next-month contracts also qualify.
- Order Timing: Orders can be placed, modified, or cancelled between 9:00 AM and 9:07–9:08 AM (end time may vary by a minute).
- Allowed Order Types: Market and limit orders only. Stop-loss and IOC orders will not be accepted.
- Order Matching: Between 9:08 AM and 9:12 AM, NSE will run matching to determine the opening (equilibrium) price based on maximum tradable volume.
- Post-Session Handling:
- Unmatched limit orders carry forward to regular trading with time-priority.
- Orders failing margin checks will be rejected.
This pre-open mechanism mirrors the cash market format and is expected to create a more orderly and transparent opening for the F&O segment.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.