The National Stock Exchange (NSE) will introduce a new 15-minute Pre-Open Session for the F&O (Futures & Options) segment starting December 8, 2025. This change will decide the opening futures price before the market opens. Below is a clear, simple explanation of how it works and what traders should expect.
What Is the New F&O Pre-Open Session?
The F&O market will now open with a structured auction instead of abrupt price movements. Between 9:00 AM and 9:15 AM, NSE will collect and match orders to find the equilibrium opening price. This makes the opening more stable and transparent.
Pre-Open Session Timings (Easy Breakdown)
- 9:00 – 9:08 AM: Traders can place, modify, or cancel orders.
- 9:08 – 9:12 AM: Orders are matched; no changes allowed.
- 9:12 – 9:15 AM: Buffer period before normal trading begins.
By 9:15 AM, the opening price is already discovered, giving traders a clearer start.
Which Contracts Are Included?
- All current-month stock and index futures
- Next-month futures (only in the last 5 days before expiry)
What Is Not Included?
- Options
- Spread contracts
- Pre-open is skipped on corporate-action ex-dates
Why This Change Matters
NSE’s new system brings several advantages for traders and the market:
- Lower volatility at the opening
- Better liquidity and deeper order books
- Fair and transparent price discovery
- Alignment with global derivatives markets
How the New Pre-Open Auction Works
The exchange will collect all buy and sell orders in a call-auction pool. It will then calculate the equilibrium price the price where the maximum number of contracts can be traded.
- All orders are pooled together.
- NSE finds a single opening price.
- Unmatched limit orders move to the regular market session.
- No order changes are allowed during matching.
This process ensures that the market opens with a rational, data-driven price instead of sudden, chaotic movements.
Risk Controls That Remain Active
- Margin validation before order acceptance
- STPC (Self-Trade Prevention) will stay enabled
- Market and Limit Price Protection will use the discovered equilibrium price
Common Questions
1. What is the purpose of the F&O Pre-Open Session?
The purpose is to discover the opening futures price in a fair and transparent auction, leading to smoother market openings.
2. Does this apply to Options?
No. The new pre-open session applies only to futures contracts—not options or spread contracts.
3. How will this change trading?
Traders will see more stable prices at the open, lower volatility, and better visibility before entering positions.
4. Will this affect intraday traders?
Yes. Intraday traders will benefit from clearer opening levels and improved liquidity during the first minutes of trading.
Final Summary
NSE’s new 15-minute Pre-Open Session for F&O brings a more organized and fair way to determine opening futures prices. The rule aims to create smoother openings, reduce volatility, and provide traders with more transparent information before the first trade of the day.
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