{"id":6051,"date":"2025-12-01T10:39:33","date_gmt":"2025-12-01T10:39:33","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=6051"},"modified":"2025-12-08T04:25:37","modified_gmt":"2025-12-08T04:25:37","slug":"pre-open-session-in-equity-derivatives-what-paytm-money-users-need-to-know","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/pre-open-session-in-equity-derivatives-what-paytm-money-users-need-to-know\/","title":{"rendered":"Pre-Open Session in Equity Derivatives: What Paytm Money Users Need to Know"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">A major update is coming to India\u2019s derivatives markets! From <\/span><b>December 08, 2025<\/b><span style=\"font-weight: 400;\">, both <\/span><b>NSE<\/b><span style=\"font-weight: 400;\"> and <\/span><b>BSE<\/b><span style=\"font-weight: 400;\"> will introduce a <\/span><b>Pre-Open Session for Index &amp; Stock Futures<\/b><span style=\"font-weight: 400;\">. This move, guided by SEBI, aims to enhance trading convenience and ensure smoother, more efficient markets.<\/span><\/p>\n<h3><b>What is a Pre-Open Session?<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">A <\/span><b>Pre-Open Session<\/b><span style=\"font-weight: 400;\"> is a short trading window before the regular market opens. It allows traders to place, modify, or cancel orders in advance. Based on these orders, the exchange determines the <\/span><b>equilibrium price<\/b><span style=\"font-weight: 400;\">, ensuring fair and transparent price discovery at market open.<\/span><\/p>\n<h3><b>Benefits for Traders<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Better Price Discovery<\/b><span style=\"font-weight: 400;\"> \u2013 Fairer opening prices with less volatility.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Improved Liquidity<\/b><span style=\"font-weight: 400;\"> \u2013 More orders matched at open, reducing gaps.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Risk Management<\/b><span style=\"font-weight: 400;\"> \u2013 Helps absorb overnight news and global market movements.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<h3><b>Effective from<\/b><\/h3>\n<p><b>Go-Live date:<\/b><span style=\"font-weight: 400;\"> December 08, 2025<\/span><\/p>\n<p><b>Timings:<\/b><\/p>\n<div class=\"relative overflow-x-auto shadow-md sm:rounded-lg\">\n<table class=\"w-full text-sm text-left rtl:text-right text-gray-500 dark:text-gray-400\" style=\"height: 182px;\" width=\"784\">\n<thead class=\"text-xs text-gray-900 lowecase bg-gray-50 dark:bg-gray-700 dark:text-gray-400\">\n<tr>\n<td class=\"px-6 py-3\"><strong><span style=\"font-size: 10pt;\">Order entry\/modification\/<\/span><span style=\"font-size: 10pt;\">cancellation<\/span><\/strong><\/td>\n<td class=\"px-6 py-3\"><span style=\"font-weight: 400; font-size: 10pt;\">9:00 AM to 9:08 AM<\/span><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr class=\"odd:bg-white odd:dark:bg-gray-900 even:bg-gray-50 even:dark:bg-gray-800 border-b dark:border-gray-700 border-gray-200\">\n<td class=\"px-6 py-3\"><span style=\"font-size: 10pt;\"><strong>Order matching and trade <\/strong><\/span><strong style=\"font-size: 10pt; font-family: inherit;\">confirmation<\/strong><\/td>\n<td class=\"px-6 py-3\"><span style=\"font-weight: 400; font-size: 10pt;\">9:08 AM to 9:12 AM<\/span><\/td>\n<\/tr>\n<tr class=\"odd:bg-white odd:dark:bg-gray-900 even:bg-gray-50 even:dark:bg-gray-800 border-b dark:border-gray-700 border-gray-200\">\n<td class=\"px-6 py-3\"><span style=\"font-size: 10pt;\"><strong>Buffer period before <\/strong><\/span><span style=\"font-size: 10pt;\"><strong>continuous trading<\/strong><\/span><\/td>\n<td class=\"px-6 py-3\"><span style=\"font-weight: 400; font-size: 10pt;\">9:12 AM to 9:15 AM<\/span><\/td>\n<\/tr>\n<tr class=\"odd:bg-white odd:dark:bg-gray-900 even:bg-gray-50 even:dark:bg-gray-800 border-b dark:border-gray-700 border-gray-200\">\n<td class=\"px-6 py-3\"><span style=\"font-size: 10pt;\"><strong>Normal Trading Hours<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/span><\/td>\n<td class=\"px-6 py-3\"><span style=\"font-weight: 400; font-size: 10pt;\"><span style=\"font-weight: 400;\">9:15 AM to 3:30 PM<\/span><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3><b>\u00a0Contract Eligibility<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The pre-open session is applicable to the following instruments:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Current-Month Futures: Both stock and index futures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next-Month Futures: Only eligible during the last 5 trading days prior to the current-month expiry.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Note on After Market Orders (AMO): AMOs placed for eligible securities (either the previous day or pre-market) will execute during this session. Market orders placed as AMOs will have price protection applied based on the previous day&#8217;s closing price.<\/span><\/p>\n<h3><b>Excluded Contracts<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The following instruments will not participate in the pre-open session:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Options<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Calendar Spreads<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Far-month futures<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Futures of securities on the ex-date of a corporate action<\/span><\/li>\n<\/ul>\n<h3><b>Operational Rules<\/b><\/h3>\n<ul>\n<li><span style=\"font-weight: 400;\">Mechanism: Price discovery is conducted via a Call Auction Mechanism at exchange.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Transparency: The Indicative Equilibrium Price remains visible throughout the session.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Self-Trade Prevention: STPC (Self-Trade Prevention Check) remains applicable<\/span><b>.<\/b><\/li>\n<\/ul>\n<h3><span style=\"font-size: 14pt;\"><b>Order Management<\/b><\/span><\/h3>\n<div class=\"relative overflow-x-auto shadow-md sm:rounded-lg\">\n<table class=\"w-full text-sm text-left rtl:text-right text-gray-500 dark:text-gray-400\" style=\"height: 182px;\" width=\"784\">\n<thead class=\"text-xs text-gray-900 lowecase bg-gray-50 dark:bg-gray-700 dark:text-gray-400\">\n<tr>\n<td class=\"px-6 py-3\"><span style=\"font-size: 12pt;\"><b>Feature<\/b><\/span><\/td>\n<td class=\"px-6 py-3\"><span style=\"font-weight: 400; font-size: 10pt;\"><span style=\"font-size: 12pt;\"><b>Details<\/b><\/span><\/span><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr class=\"odd:bg-white odd:dark:bg-gray-900 even:bg-gray-50 even:dark:bg-gray-800 border-b dark:border-gray-700 border-gray-200\">\n<td class=\"px-6 py-3\"><span style=\"font-weight: 400;\">Allowed Orders<\/span><\/td>\n<td class=\"px-6 py-3\"><span style=\"font-weight: 400;\">Limit Orders and Market Orders (with price protection).<\/span><\/td>\n<\/tr>\n<tr class=\"odd:bg-white odd:dark:bg-gray-900 even:bg-gray-50 even:dark:bg-gray-800 border-b dark:border-gray-700 border-gray-200\">\n<td class=\"px-6 py-3\"><span style=\"font-weight: 400;\">Restricted Orders<\/span><\/td>\n<td class=\"px-6 py-3\"><span style=\"font-weight: 400;\">Stop-Loss (SL) and Immediate or Cancel (IOC) orders are not allowed.<\/span><\/td>\n<\/tr>\n<tr class=\"odd:bg-white odd:dark:bg-gray-900 even:bg-gray-50 even:dark:bg-gray-800 border-b dark:border-gray-700 border-gray-200\">\n<td class=\"px-6 py-3\"><span style=\"font-size: 10pt;\"><span style=\"font-weight: 400;\">Unmatched Orders<\/span><\/span><\/td>\n<td class=\"px-6 py-3\">\n<ul>\n<li><span style=\"font-weight: 400;\"> Limit Orders: Carried forward to the normal market.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Market Orders: Converted to Limit Orders and carried forward.<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h3><b>Risk &amp; Margin<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Validation: Margin validation is active; orders with insufficient funds will be rejected.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Netting: There is no netting of orders; margin is charged separately for each contract.<\/span><\/li>\n<\/ul>\n<p><b>What Should You Do as a Paytm Money User?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Get familiar with how the Pre-Open Session works.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Plan your derivative strategies in advance.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Use this window to manage risk and capture better entry prices.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<p><b>Conclusion<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> This is a positive step for all traders in the <\/span><b>Equity Derivatives Segment<\/b><span style=\"font-weight: 400;\">. Whether you trade index futures or stock futures, the <\/span><b>Pre-Open Session<\/b><span style=\"font-weight: 400;\"> will give you more control and confidence at the start of each trading day. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Stay tuned on the Paytm Money app for more updates and educational guides on using Pre-Open Sessions effectively.<\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: 10pt;\">Source: ET, NSE, BSE<\/span><\/p>\n<p><span style=\"font-weight: 400; font-size: 8pt;\">Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for investor awareness, entertainment and information purpose only and in no way to be considered as an advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking \u2013 INZ000240532, Depository Participant &#8211; IN &#8211; DP &#8211; 416 &#8211; 2019, Depository Participant Number: CDSL \u2013 12088800, NSE (90165), BSE (6707), SEBI reg No. Research Analyst &#8211; INH000020086. Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019. For complete details, please visit: https:\/\/www.paytmmoney.com\u00a0\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A major update is coming to India\u2019s derivatives markets! From December 08, 2025, both NSE and BSE will introduce a Pre-Open Session for Index &amp; Stock Futures. This move, guided by SEBI, aims to enhance trading convenience and ensure smoother, more efficient markets. What is a Pre-Open Session? A Pre-Open Session is a short trading<a href=\"https:\/\/www.paytmmoney.com\/blog\/pre-open-session-in-equity-derivatives-what-paytm-money-users-need-to-know\/\">Continue reading <span class=\"sr-only\">&#8220;Pre-Open Session in Equity Derivatives: What Paytm Money Users Need to Know&#8221;<\/span><\/a><\/p>\n","protected":false},"author":45,"featured_media":6052,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,16],"tags":[],"class_list":["post-6051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcements","category-fno"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/45"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=6051"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/6051\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/6052"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=6051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=6051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=6051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}