Before the markets open up for a regular trading session, there is a small window of opportunity for traders to make some trades. This only lasts a short while. For traders, there may be significant advantages in pre-open stock trading sessions, but you must be aware of certain aspects of what this means for traders before you get too eager.
The pre-open stock trading session is conducted from 9.00 to 9.15 am every day that a trading session is on. It has a duration of 15 minutes. This is the amount of time that traders have to trade before the regular trading session begins. In this brief period, matching and gathering periods constitute the session. The price range that is applicable must match the price range of the open market. During this small period, orders may be cancelled, changed, or placed. When you first open a demat account, you may not know about the facility for trading in the pre-open stock trading session, but you should familiarise yourself with this.
There are many ways that you can invest in the stock market today. You can trade in stock directly via exchanges, or you may subscribe to any upcoming IPO and get the allotted shares you wish for. If you trade in the stock market directly, pre-open stock trading is one aspect of trading to grasp. A key aspect to know is which stocks trade in the pre-open stock trading sessions. This way, you can plan your trades. In the current trading sessions, the exchanges only permit the SENSEX 30 and NIFTY 50 stocks to trade at the BSE and NSE, respectively.
In case you wish to know who can benefit from trading in this tiny window that opens before a regular session of trading begins, the answer is that anyone can. Although, in the stock market pre-open sessions, it is common practice to find mainly wealthy and institutional investors, technically any trader has the choice to trade in these small sessions.
There are certain advantages of treading in the brief session before a market opens, and these are highlighted below:
Convinced you want to open a demat account (if you have not already), and begin trading in the stock market? You can do so with ease, and make the most of many opportunities to make your investing fruitful. As mentioned before, you can invest in stocks in many ways, including signing up for any upcoming IPO or selecting a mutual fund.
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