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📅 Effective from December 8, 2025
The National Stock Exchange (NSE) has announced a major reform for traders dealing in Futures and Options (F&O).
Just like the equity cash market, the F&O segment will now have a Pre-Open Session — a move aimed at improving price discovery and reducing market volatility.
🧠 What is a Pre-Open Session?
The Pre-Open Session is the time before the regular market opens when all buy and sell orders are collected.
These orders are matched through a Call Auction System, which helps determine the fair opening price.
This system ensures transparency, minimizes price fluctuations, and creates a smoother market opening experience.
⏰ New Pre-Open Session Timings
Here’s the timeline for the F&O Pre-Open Session:
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9:00 AM – 9:07 AM: Orders can be entered.
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9:07 AM – 9:08 AM: Orders can be modified or canceled.
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9:08 AM – 9:12 AM: Random closure of order entry and price discovery.
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9:12 AM – 9:15 AM: Transition buffer to regular market.
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9:15 AM onwards: Regular F&O market trading begins.
This 15-minute window helps collect orders and determine fair opening prices.
💡 Benefits for F&O Traders
✅ Reduced Volatility: Sudden gap-ups or gap-downs during market opening will reduce significantly.
✅ Better Transparency: Opening prices will be determined systematically through call auction.
✅ Early Market Trend Insight: Traders can gauge the market direction even before regular trading begins.
✅ Options Traders’ Advantage: Pre-market data will reveal which strike prices may open at what premiums.
✅ Faster Decision-Making: Global market movements overnight can be factored in before market opens.
⚙️ Where Will This Rule Apply?
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Initially, it will apply only to current month (M1) Futures Contracts.
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Later, it may be extended to next month (M2) contracts.
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It will not apply to spread contracts or option contracts.
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Stocks under corporate actions like dividends or mergers will be excluded from this session.
🏦 Why NSE Took This Step
NSE introduced this mechanism to make the F&O market more transparent, stable, and efficient.
The equity segment already has a pre-open session between 9:00 AM and 9:15 AM.
Now, extending the same to F&O trading will allow traders to predict opening trends better and plan strategies more effectively.
📊 Conclusion
The launch of a Pre-Open Session in the F&O segment is a positive development for all traders.
It will bring stability, transparency, and better price discovery to the Indian derivatives market.
With this reform, traders will have more clarity and confidence while making early trade decisions.
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