Pre Open Market

What is pre-open market?

The pre-open market, also known as the pre-market session or call auction session, is a period before the regular trading hours where investors can place orders to buy or sell stocks at a mutually determined opening price. This session is crucial for setting the initial market price for the day's trading.

Pre Open Market Time in India

In India, the pre-open market session occurs between 9:00 AM to 9:15 AM (Indian Standard Time), which is 15 minutes before the normal market trading begins.

What Happens in Pre-Open Market Session?

During the pre-open market session, traders and investors can place orders to buy or sell securities. The key feature of this session is that all orders placed are matched to determine the opening price of stocks for regular trading. The opening price is based on the equilibrium price where maximum buy and sell orders can be executed.

How to Trade in Pre-Open Market in India?

To participate in the pre-open market session in India, follow these steps:

1. Place Orders: Use your trading platform or broker's online portal to enter buy or sell orders for stocks during the pre-open session.

2. Specify Order Details: Set the quantity and price at which you wish to buy or sell the stocks.

3. Review Orders: Check and confirm your orders before the session starts.

4. Monitor Order Execution: Once the session begins, monitor your order status. Orders are matched and executed based on the equilibrium price calculated.

5. Understand Price Discovery: The opening price for each stock is determined based on the order book during this session.

How to Buy IPO in Pre-Open Market?

During an initial public offering (IPO), investors can participate in the pre open market session to place orders for IPO shares. To buy IPO shares in the pre open market:

1. Check IPO Details: Understand the IPO timeline, issue price, and lot size.

2. Place Order: Use your trading account to place a buy order for the desired quantity of IPO shares during the pre open session.

3. Allotment: Orders placed during this session will be considered for allotment based on the IPO subscription and allocation rules.

4. Post-Session Trading: After the pre open market session, monitor your order status. Allotted IPO shares will reflect in your demat account upon successful allocation.

Participating in the pre open market session requires careful consideration of market conditions and price discovery mechanisms. It's essential to stay informed about the stock's fundamentals and market trends before placing orders during this session.