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    On what basis is the equilibrium / opening price determined for pre-open session?

    Opening price is determined based on the principle of demand supply mechanism.

    The equilibrium price determined in pre-open session is considered as open price for the day.

     

    Maximum Volume:

    The equilibrium price is the price at which the maximum volume is executable.

     

    Minimum Order Imbalance (if multiple prices qualify):

    In case more than one price meets the criteria, the equilibrium price is the price with minimum order imbalance quantity (unmatched order quantity)

     

    Closest to Previous Closing Price:

    • In case more than one price has same minimum order imbalance quantity, the equilibrium price is the price closest to the previous day’s closing price.
    • In case the previous day’s closing price is the mid-value of pair of prices which are closest to it, then the previous day’s closing price itself is taken as the equilibrium price.
    • In case of corporate action, previous day’s closing price is adjustable closing price or the base price.


    Orders Considered:

    Both limit and market orders reckon for computation of equilibrium price.


    Opening Price for the Day:

    The opening price is determined based on the principle of demand and supply

    • The equilibrium price determined in pre-open session is considered as open price for the day.
    • In case only market orders exist both in the buy and sell side, then order is matched at base price. Therefore, Base price is the opening price.
    • In case no price is discovered in the pre-open session, the price of the first trade in the normal market will be considered as the opening price.
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