Starting Monday, December 8, the National Stock Exchange of India (NSE) — along with its counterpart Bombay Stock Exchange (BSE) — will launch a pre-open session for equity derivatives (F&O), for the first time ever. This 15-minute window from 9:00 AM to 9:15 AM uses a call auction mechanism to collect, match and confirm orders before the regular trading session begins.

During the first 7–8 minutes, traders can place, modify, or cancel orders, after which a random cut-off closes order entry. Between 9:08 AM–9:12 AM, matching happens and an equilibrium opening price is set, followed by a buffer phase until 9:15 AM. From then on, normal continuous trading begins.

The change aims to improve price discovery, reduce sharp opening-hour volatility, and bring more transparency to the derivatives market. By aligning F&O opening structure with the equities segment, the reform is expected to benefit institutional and retail traders alike — offering a smoother start to trading days, especially in response to overnight global cues.

For many traders, this shift means re-thinking start-of-day strategies — the “opening price jump” may be tamed, but informed pre-open orders and careful planning could deliver better control over entries and exits.