What is a Pre-Open Market Session in the Stock Market?

02 Nov 2021|

1 min read |

by ICICI Securities Team

Introduction

There are many aspects to trading, and for a beginner, it helps to gather as much knowledge as possible. Here we examine one such important factor, Pre-Market Trading. It is trading that occurs on exchanges before the regular trading hours start.

The volume traded in the Pre-Open Market is usually lower than what you see during the regular trading hours. There are not many participants active before the start of the market, and investors often find it challenging to execute the transactions. If you engage in Pre-Market Trading, you will have less liquidity, and the prices might not adjust as they do in a regular trading session.

What is the pre-open market?

You can engage in premarket trading between 9:00 AM to 9:15 AM on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The pre-market is a period of trading activity that happens before the regular stock market session.

Background of premarket trading

The Pre-Open Market session gets executed through the computer and with an alternative trading system. Traders use it to see where the market is headed before the start of regular trading. It also helps you get ahead of the market reactions to the latest news like political instability or overseas events that could influence the market or a particular sector.

Further, if the company announces good earnings after market closure, there will be a rise or fall in stock on the next trading day. In such cases, the pre-market trader takes advantage of the market volatility and attempts to buy and sell the securities.

Understanding pre-market trading

The trading in an extended session happens through an Electronic Communication Network (ECN). So, when you place a buy order at a specific rate, the ECN keeps track of a similar sell order by acting like a matchmaker that connects the buyer and seller. There is no need for a broker for the transaction to happen. The liquidity level is low, and the trades are volatile. Here are the types of orders you can place:

Limit orders

If you place an order for a certain quantity at a specific price, it only gets executed when the security reaches the price. This is known as a limit order.

Market orders

When the order price is not specified during the buy or sell transaction, and you want them to get executed at the prevailing price, it is known as a Market Order. The pre-market session takes place in three slots, starting from 9:00 AM. The first session lasts eight minutes and is known as the order collection period. You can modify or cancel the order during this period. Then there is a four-minute session known as the order matching period and confirmation of trade period.

Here, the orders placed get confirmed based on the price identification method, and there is no possibility of order modification or cancellation. The last session is a three-minute buffer period that facilitates the transaction from the pre-open market to the regular market session.

Conclusion

Now that you know about Pre-Market Trading make the most of it by placing orders before the regular session.

Disclaimer

ICICI Securities Limited has its registered office at ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400025, India, Tel No:- 022 - 2288 2460, 022 - 2288 2470. The non-broking products / services like iLearn and Financial Learning are not exchange traded products / services and ICICI Securities Ltd. is just acting as a distributor/ referral Agent of such products / services and all disputes with respect to the distribution activity would not have access to Exchange investor redressal or Arbitration mechanism. iLearn is not an exchange traded product/service of ICICI Securities Ltd. All disputes with respect to the activity on the platform would not have access to Exchange investor redressal or Arbitration mechanism.

ICICI Securities Ltd. is a Member of National Stock Exchange of India Ltd (Member Code :07730), BSE Ltd (Member Code :103) and Member of Multi Commodity Exchange of India Ltd. (Member Code: 56250) and having SEBI registration no. INZ000183631. ICICI Securities Ltd. is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. Name of the Compliance officer (broking): Mr. Atul Agrawal, Contact number: 022-69997051, E-mail address: complianceofficer@icicisecurities.com Investments in securities markets are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. ICICI Securities Ltd. and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Such representations are not indicative of future results. The securities quoted are exemplary and are not recommendatory. AMFI Regn. No.: ARN-0845. PFRDA registration numbers: POP no -05092018. ICICI Securities Ltd. acts as a Composite Corporate agent having registration number -CA0113. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund, Corporate Fixed Deposits, Bonds, Alternate investment funds, Tax planning, Succession planning, NPS, IPO, Investment Advisory and Loans related services are not Exchange traded products and ICICI Securities Ltd. is acting as a distributor to solicit these products. Please note, Insurance related services are not Exchange traded products and ICICI Securities Ltd. is acting as a corporate agent to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The non-broking products / services like Research, etc. are not exchange traded products / services and all disputes with respect to such activities would not have access to Exchange investor redressal or Arbitration mechanism. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investors should consult their financial advisers whether the product is suitable for them before taking any decision. The contents herein mentioned are solely for informational and educational purpose.

Did you enjoy this article?

1 people liked this article. Share Feedback

Recent Articles

View all

HOW TO TRADE GOLD IN COMMODITY DERIVATIVES MARKET IN INDIA

Gold is one of the world's most actively traded precious metals and is widely used for investment, jewellery and industrial applications. It is also considered a safe-haven asset during periods of economic or market uncertainty.

343 views

3 minutes

07 Sep 2026

Global Commodity Exchanges: NYMEX, COMEX & LME and Their Link With MCX

In this article, we’ll explore the three exchanges that matter most: NYMEX, COMEX, and the London Metal Exchange (LME) and their link with MCX.

514 views

1 minutes

31 Aug 2026

Mainboard IPO: Meaning, Eligibility and Key Benefits

Explore the meaning of a mainboard IPO, SEBI's eligibility routes, NSE and BSE listing rules, key benefits, and the checks investors should make before applying.

2 k views

4 minutes

13 Aug 2026