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What is Pre-Open Market Session in Stock Market and How It Functions? July 16 2022Stock Market Education

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What is Pre-Open Market Session in Stock Market and How It Functions?

The Indian Stock Exchange beings at 9 am and close at 3 pm. If you are a beginner in the stock market or you want to learn how a stock market functions, the first thing you must know is its timing. The Indian stock market opens at 9 am but the actual opening happens at 9.15 am. So the question that would arise in anyone’s head would be what happens between 9 am to 9.15 am. This 15-minute session is known as a pre-open session. It applies to both NSE and BSE.

What is the pre-open market?

The pre-open market session begins at 9 am and ends at 9.15 am. The concept of pre-open was introduced to reduce volatility in the stock market. In this session, the first 8 minutes i.e. from 9 am to 9.08 am orders from traders and investors are collected, modified, or cancelled. In this time slot, you can place your limit or market orders. This order window shuts between 9.07 am to 9.08 am.

This special window helps in reducing volatility due to events like mergers, acquisitions, or any other news in the stock.

How Pre-Open Market Session Reduces Volatility in Share Market?

The pre-market or pre-pen session helps in stabilizing the market session by determining the actual demand and supply of stocks. With the help of demand and supply, the equilibrium in the stock price is decided. This mechanism stabilizes the price of a stock and reduces the feeling of panic or fear among the investors.

Break-Up of Pre-Open Market Session

The break-up of the first 15 minutes is as follows;

· The first 8 minutes i.e. from 9 am to 9.08 am is for placing buy and sell orders. In this session, you can even modify or cancel the order. After the first initial 8 minutes, no further orders are accepted.


· The next 4 minutes i.e. from 9.08 am to 9.12 am is for order matching and order confirmation. No buy, sell, modification or cancellation orders can be placed during this period. In this period the opening price of the stock is determined for the normal session.


· The next 3 minutes i.e. from 9.12 am to 9.15 am is for the buffer session. This period is for the transition from the pre-open market to a regular market session. The buffer period is used to overcome any abnormalities in the previous two phases of the pre-opening session.


In the pre-opening session of the market, anyone can trade and place orders. Since you are now aware of the pre-market session, you may even try placing an order during that period. If you are a beginner in the market and you may consider opening a demat account with Indira Securities. We offer a wide range of broking services at the most affordable rates. 

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