What are Pre-open session in Indian Stock Market?

 What is Pre-open session in Indian Stock Market?

The Pre-Open session in the Indian stock market is a 15-minute period that occurs before the regular trading session. it runs from 9: 00 AM to 9:15 AM. on both the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange):

here are the activities of the pre-open session:

1. ORDER COLLECTION PERIOD (9.00 AM - 9:08 AM): During this time, investors can place, modify, or cancel their orders. The system randomly closes the order collection period between the 7th and 8th Minute.

2. ORDER MATCHING PERIOD (9:08 AM - 9:12 AM):  Orders are matched at a single equilibrium price, which becomes the opening price for the regular session. The matching happens in a specific sequence. Limit orders with the limit orders, residual limit orders with the market orders and market orders with the market orders.

3. TRANSITION PERIOD (9:12 AM - 9: 15 AM): The silent period facilitates the transition from the pre-open session to the normal market.

The pre-open session helps in reducing volatility and determining the opening price of stocks based on demand and supply.

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