Pre-Open session in stock derivatives segment begins at NSE

From December 8^th, 2025, a pre-open session has also started taking place for the derivatives segment, at NSE. This pre-open session will take place between 9 a.m. and 9:15 a.m.  Between 9 a.m. and 9:08 a.m. orders can be entered, modified or cancelled during the pre-open session. Between 9:07 a.m. and 9:08 a.m. the order entry period will end at a random point. Then between 9:08 a.m. and 9:15 a.m. order matching will be done. At 9:15 a.m. the market will open, as usual.

Pre-open session may help in more efficient price discovery in the derivatives segment

This pre-opening session may help in better price discovery at the start of the market. It will help in reducing market volatility at the start of the day. Orders for futures contracts on indices and futures contracts on stocks can be placed during the pre-market session, initially.

Before this, pre-market session happened only in the cash segment of the market. Now it has been extended to the derivatives (Futures & Options) segment too.

Futures & Options trading has increased exponentially in India in the past few years

Futures & Options (F&O) trading has increased exponentially in Indian equity markets in the past few years. This has brought the accompaniment risk of retail traders making significant losses too in the derivatives segment. SEBI and exchanges are trying to make derivatives trading less risky for smaller, retail traders.

Derivatives are complex instruments to understand. Many traders who trade in derivatives lack sufficient knowledge to do so. This is causing significant losses to many of these traders. In the recent past, SEBI has put in place restrictions such as physical delivery settlement of derivatives in stocks, increasing contract size etc. to limit the participation of smaller traders and reduce speculation in the derivatives market.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source : NSE