How to trade in Pre-Open Market session?
Learn everything about Pre-Open Market session
If you’re interested in finding out how to trade in pre-open market session, keep reading.
Taking a trade in Pre-open market session is easy and simple in both NSE and BSE.
How to trade in Pre-Open Market session?
Prior to the start of the regular trading hours in NSE and BSE, pre-open market trading takes place. You can place the orders between 9:00 AM to 9:07 AM, i.e just before the main trading session starts.
Pre-open market trading volumes are typically much lower than during regular trading hours. Investors and traders find it difficult to execute transactions because there are very few participants active before market hours, i.e. 9:15 a.m. Because investors and traders have less liquidity in premarket sessions, converting stocks into cash, prices may not adjust as quickly as they do in regular market sessions.
The pre-open market order entry session starts from 9:00 AM to 9:07 AM (7 Minutes). If you know how to place the orders in regular trading session then you have to use your borkers terminal in the same manner to place the pre-open market session orders.
This session allows you to place a buy and sell order for stocks using limit order or market order. Orders can be modified or cancelled. No orders are accepted after the first 09:07AM.
After the order entry session pre-open market order matching session starts for order confirmation and order matching.
During the order matching session, the opening price of stocks for the regular trading session is calculated. During this session, no orders can be bought, sold, cancelled, or modified. Your orders will give you error if you try to place it.
Reamining time till regular market trading starts is known as pre-open market buffer session. Nothing happens in this session. It makes the transition from pre-open to regular market session easier.