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NSE F&O Pre-Open trading: New rules & timings for Derivatives Market

The National Stock Exchange (NSE) is launching pre-open trading sessions for Equity Derivatives (F&O) from December 8, 2025. This change aims to improve price discovery and market opening smoothness. These 15-minute sessions will use a Call Auction Mechanism, applying to current and near-expiry next-month futures, not options or far-month contracts.

NSE Introduces Pre-Open for F&O Segments
NSE Introduces Pre-Open for F&O Segments Credit:NSE
| Updated on: Nov 04, 2025 | 11:02 AM

New Delhi: There is going to be a big change in the Indian stock market. The National Stock Exchange (NSE) has announced that pre-open trading sessions will be started in the Equity Derivatives (F&O) segment from 8 December 2025. This step has been taken to ensure better price discovery and smooth opening in the market.

Until now, pre-open sessions were held only in the equity (cash market), but now this facility will be available in the F&O market as well. That is, it will be applicable to both index futures and single stock futures. The new pre-open session will run every day from 9:00 AM to 9:15 AM and it will be conducted through the Call Auction Mechanism. This 15 minutes will be divided into three parts —

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NSE F&O new Timings

  • Order Entry Period (9:00 AM — 9:08 AM)
  • Traders will be able to place, modify or cancel orders during this time.
  • This phase will close randomly between the 7th and 8th minutes.
  • The pre-open sessions of the equity and F&O segments will be independent of each other.

Order Matching and Trade Confirmation (9:08 AM — 9:12 AM)

  • In this phase, the system will decide the equilibrium price i.e. at what level the opening price will be made.
  • Orders will then be matched at the same price.
  • New orders or modifications will not be allowed during this time.

Buffer Period (9:12 AM — 9:15 AM)

  • This is a short transition period that will act as a bridge between pre-open and normal trading.
  • This pre-open session will only apply to indices and stock futures of the current month (M1).
  • But this rule will also apply to Next Month (M2) futures in the five trading days before expiry.
  • However, this will not apply to Far-Month (M3) contracts, spread trades, options, and X-date futures.

For example, if a contract expires on 30 December 2025, then the pre-open session will be applicable to it from 1 December till its expiry day. Whereas between 23rd and 30th December, this session will also be applicable to January 2026 (M2) contracts (except holidays).

Market parameters and trading rules

The tick size, lot size and price band for the pre-open session will remain the same as in the normal market. Both market and limit orders can be placed, but orders like stop-loss or IOC cannot be placed. Traders will get to see indicative prices, equilibrium data and demand-supply statistics in real time. During order matching, the system will fix a single equilibrium price and match the order in this order —

  • Limit Order to Limit Order
  • Market orders from remaining limit orders
  • Market order from market order

What will be the benefit

According to the NSE, this structured pre-open process will help in increasing liquidity, improving price transparency and reducing volatility at the time of market opening.

(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)

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