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News Topical, Digital Desk : If you trade in the stock market, especially in F&O i.e. Futures and Options (Derivatives), then this news is very important for you. National Stock Exchange (NSE) has decided to start pre-open session in the F&O segment for the first time. Now from 8 December 2025, the process of placing orders and deciding the opening price will continue in F&O also from 9:00 am to 9:15 am. This step is considered a major improvement towards increasing transparency in the market and reducing opening volatility.
Now, a major change in trading timings.
Under the new NSE rules, the F&O market's opening morning session will operate as follows: -
9:00 to 9:08 AM: Traders can place, modify, or cancel orders.
- 9:08 to 9:12 AM: The system will match orders and determine the opening price.
- 9:12 to 9:15 AM: A buffer period will be established so that regular trading can begin at 9:15 AM. This means that investors who wanted to place orders just before the market opens will now have this new 15-minute window.
What benefits will this have for investors?
1. Reduced volatility at the opening - Previously, F&O contracts often experienced sharp fluctuations as soon as the market opened at 9:15 AM. Now, orders will be adjusted in advance.
2. Transparency in pricing - The market opening price will now be determined by demand and supply, leading to accurate price discovery.
3-Better entry points - The pre-open will give you an idea of whether the market will open higher or lower, making it easier to formulate an entry-exit strategy.
4-Benefits retail traders - Now, like large traders, small investors will also be able to make decisions based on opening trends.
Which F&O contracts will the new rule apply to?
Initially, this will only apply to current-month (M1) futures contracts. In the last days of the month, it will be extended to next-month (M2) contracts. This rule will not apply to spread and option contracts. Pre-open will not be applicable for stocks undergoing corporate action (such as a merger or dividend).
How will the opening price be determined? The system will select the price where the highest volume of trades is possible—that is, the price will be determined by the balance of demand and supply. If multiple prices match, the price closest to the previous day's closing price will be taken. Orders that do not match will be sent to the regular market at the same timestamp.
Risk and margin checks will be conducted in advance. Margin validation will be applied to every trade, meaning orders that lack sufficient funds will be automatically rejected. Additionally, NSE's Self Trade Prevention System will be activated during this period to prevent two of its own orders from clashing.
When will this new system be implemented? Pre-open trading in F&O will begin on Monday, December 8, 2025. A mock session (test trading) will be held on Saturday, December 6, 2025, to familiarize all members with the system.
NSE says that the pre-open session in F&O will make the pricing process transparent and reduce volatility in the initial minutes. This will provide traders with accurate signals and reduce risk. This new change in F&O will further professionalize the trading culture. Investors will now have the opportunity to understand market trends early in the morning. This means that from December 8, the market will open earlier, providing more time to think and creating better opportunities.
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