The National Stock Exchange of India (NSE) has announced the introduction of a pre-open session for equity derivatives, covering both index and single stock futures, effective December 8, 2025. This strategic move is designed to enhance price discovery, improve transparency, and stabilize volatility ahead of regular market hours.
Key Highlights of the Pre-Open Session
| Session Component | Time Window | Details |
| Order Entry | 9:00 AM – 9:08 AM | Traders can place, modify, or cancel orders. The system will randomly close this phase between the 7th and 8th minute. |
| Order Matching | 9:08 AM – 9:12 AM | Trades will be matched based on the equilibrium price logic determined by demand-supply balance. |
| Buffer Period | 9:12 AM – 9:15 AM | Allows smooth transition into the regular trading session. |
Applicability and Scope
The pre-open mechanism will initially apply to current-month futures contracts on indices and individual stocks. Additionally, during the last five trading days before expiry, it will also cover next-month contracts.
However, the session will not apply to:
- Far-month (M3) contracts
- Option contracts
- Spread contracts
- Futures on corporate action ex-dates
Order Rules and Market Data
During the Order Entry phase:
- Both limit and market orders are permitted.
- Stop-loss, Immediate or Cancel (IOC), and other special term orders will not be accepted.
- Traders will have access to real-time data, including:
- Indicative opening prices
- Order book depth
- Demand-supply statistics
- Equilibrium price information
Objective and Expected Impact
The new pre-open session for equity derivatives aims to smoothen market openings, reduce volatility spikes, and provide fairer initial price discovery for both institutional and retail participants.
This initiative marks a major step by the NSE toward aligning the Indian derivatives market with global best practices, fostering greater market efficiency and investor confidence.
Summary:
The National Stock Exchange (NSE) will introduce a pre-open trading session for equity derivatives starting December 8, 2025. The 15-minute window (9:00–9:15 AM) will include phases for order entry, matching, and buffer transition, initially covering current-month index and stock futures. The move aims to improve price transparency and volatility control before market open.
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