Call Auction Pre Open Session FAQs

1.	What is “Call Auction in Pre-open Session” ?
	In a Call Auction market, orders are pooled in the order book but remain unexecuted till the end of the order entry period, when the orders will get matched and get executed at the single call auction price that is so determined. At the call, all buy orders are aggregated into a downward sloping demand function and all sell orders are aggregated in an upward sloping supply function. The market opening price and quantity traded are derived based on aggregated supply and demand for the underlying. The orders that trade and the price and quantity at which they trade, are set by multilateral matching, rather than by the sequence of bilateral matching used to determine trades in a continuous normal market.
2.	What are the advantages of Call Auction market?
	The advantages of call auction market are as follows:
	i)	Reduced price volatility due to multiple matching of orders at a single price
	ii)	Greater liquidity due to deeper demand supply schedule
	iii)	Better Price discovery
	iv)	Reduced market impact
3.	I have been placing pre-market orders on ICICIdirect.com, how does this change impact me ?
	You can continue to place pre-market orders which are also known as overnight orders in all scrips. Previously all your pre-market orders would go to exchange from 9.00 a.m. onwards i.e. in the normal trading session. With this change of introduction of pre-open session, in case of scrips which are part of pre-open session, you can place overnight orders or pre-market orders upto 9.00 a.m. and in case of other scrips which do not form part of pre-open session you can place overnight orders upto 9.15 a.m. Your overnight orders in pre-open enabled scrips would be sent to exchange in the pre-open session at 9.00 a.m. and your overnight orders in other scrips not forming part of pre-open session would be sent to exchange in the normal trading session starting from 9.15 a.m. For more details on overnight orders please refer FAQs given below.
4.	I have been placing orders early at the time of opening of markets , how does this change impact
	me?
	You can place orders in the normal trading session which would now start from 9.15 a.m onwards. However, you can place orders in pre-open enabled scrips from 9.00 a.m. onwards in the pre-open session which would be between 9.00 a.m. upto 9.08 a.m. where orders would directly go to exchange and get accumulated in the pre-open session. These accumulated orders of the pre-open session would get traded between 9.08 to 9.12 a.m. at the discovery price, if they get a match. In other scrips if you want your orders to be placed directly in the exchange then you would need to place orders in the normal trading session which would start form 9.15 a.m. onwards.
5.	Can I place orders in pre-open session at any time during the day?
	You can place orders in pre-open enabled scrips during the order placement time for pre-open session i.e. 9.00 a.m. to 9.08 a.m. and your orders would be sent to the exchange instantly in the pre-open session. However, you can also place overnight orders for pre-open enabled scrips upto 9.00 a.m. which will be sent to the exchange in the Pre-open session during the pre-open order placement timings (i.e. between 9.00a.m. to 9.08 a.m.).
6.	What are the timings for Pre-open session and what will happen at exchange during these
	timings in the pre-open session?
	The pre-open session shall be for a duration of 15 minutes i.e. from 9.00 a.m. to 9.15 a.m., out of which first 8 minutes shall be for order entry, order modification and order cancellation, next 4 minutes for order matching and trade confirmation and remaining 3 minutes shall be for transition of unexecuted orders from pre-open session to normal trading session. The timings and details are as follows:
	Timings Details 9:00 a.m. to 9:08 a.m. You can a) place , b) modify and c) cancel orders in this Pre-open session 9:08 a.m. to 9:12 a.m. Exchange does – a) Price Discovery, b) trade confirmations and c) converts unexecuted market orders to limit orders at discovery price (limit orders remain at your specified price) in this pre-open session 9:12 a.m. to 9:15 a.m. Transition time from pre-open to normal session. All unexecuted orders (limit & market) will be carried forward to normal trading session by exchange during this pre-open session. 9.15 a.m. to 3.30 p.m. Normal trading session i.e. Continuous trading as per existing practice
7.	How is trading in “Pre-open session” different from trading in “Normal Session“?
	In the Pre-open session orders are accumulated in the first eight minutes of the Pre-open session and then the equilibrium price is discovered at the exchange. The orders are then matched at the discovery price and trades take place at this price. Whereas in Normal trading session orders match instantly following price time priority.
8.	What is an equilibrium/discovery price?
	An equilibrium/discovery price is the price which will be discovered in the pre-open session and all matching orders during pre-open session will be executed at this price. Further, the normal market will open at this discovered price.
9.	How is the equilibrium/discovery price arrived at?
	The equilibrium price shall be the price at which the maximum volume is executable. In case more than one price meets the said criteria, the equilibrium price shall be the price at which there is minimum order unmatched quantity. The absolute value of the minimum order unmatched quantity shall be taken into consideration. Further, in case more than one price has same minimum order unmatched quantity, the equilibrium price shall be the price closest to the previous day's closing price. In case the previous day's closing price is the mid-value of a price or prices which are closest to it, then the previous day's closing price itself shall be taken as the equilibrium price. In case of corporate action, previous day's closing price shall be adjustable closing price or the base price.
	Example: An example of more than one price having minimum unmatched quantity is as follows:
	Price Buy (Qty) Cummulative Buy (Qty) Sell (Qty) Cummulative Sell (Qty) Unmatched Qty Volume Tradable 106 0 0 3000 8000 -8000 0 103 2000 2000 3000 5000 -3000 2000 96 3000 5000 1000 2000 3000 2000 94 1500 6500 1000 1000 5500 1000 92 2000 8500 0 0 8500 0 90 1000 9500 0 0 9500 0
	In the above example 103 and 96 are the prices wherein, the volume tradable and unmatched quantity is the same. To derive the equilibrium price, the said prices i.e.103 and 96 which is closest to the previous day's closing price shall be considered. In case the previous day's closing price is 95, then 96 may be considered as the equilibrium price. In case the previous day's closing price is 105, then, 103 may be considered as the equilibrium price. In case the previous day's closing price 99.5 which is the mid-value of 103 and 96, then the equilibrium price shall be the previous day's closing price i.e. 99.5.
10.	What would happen to my pending unexecuted orders in pre-open session?
	In case of pending unexecuted orders in pre-open session, they shall be shifted to the order book of the normal market session. All the unmatched market orders would be converted to limit orders at the discovery price as discovered in the pre-open session and carried forward to the normal trading session. All unmatched limit orders of pre-open session would remain at the limit price specified by you and would be carried forward to normal trading session.
11.	What happens if price is not discovered in pre-open session?
	In case the equilibrium price is not discovered in the pre-open session, wherein there are only market orders, the market orders shall be matched at previous day's close price. All unmatched market orders shall be shifted to the order book of the normal market at previous day’s close price following time priority. Previous day’s close price shall be the opening price.
	In case of equilibrium price is not discovered in the pre-open session and there are no market orders to be matched, all unmatched market orders (at previous day’s close price) and limit orders shall be shifted to the order book of the normal market following price time priority.
12.	Who arrives at the Equilibrium/discovery price?
	The exchanges decide the discovery price based on the above mentioned price discovery mechanism prescribed by SEBI.
13.	In which exchanges can I place orders in Pre-open session ?
	You can place orders in Pre-open session on NSE and BSE exchanges.
14.	Where can I see the discovery price for a scrip ?
	You can login to your account and view the discovery price under the 'Day Open' field on the Get quote page for the required scrip.
15.	Can I participate in pre-open session ?
	Yes, all customers of ICICI Securities holding 3-in-1 account and who are eligible for trading in Equity can participate in pre-open session by placing orders in pre-open enabled scrips.
16.	In which products can I place orders for pre-open session ?
	At present, you can place orders for pre-open session only in Cash product under Equity segment. All other segments and products like Derivatives (Futures & Options), Margin, MarginPLUS etc. would have only the normal trading session starting from 9.15 a.m. onwards.
17.	Can I place orders in all scrips in the pre-open session ?
	At present, only select scrips have been enabled for trading in the Pre-open session by the exchanges. To begin with all NIFTY and SENSEX scrips at NSE and BSE respectively will be enabled for pre-open session by the exchanges. Scrips which will get excluded or included in the NIFTY or SENSEX indices will still be a part of the pre-open session.
18.	Can I place Market orders during the order placement in pre-open session ?
	Yes, market orders will be accepted for pre-open enabled scrips during the order placement timings in the pre-open session. You can also place overnight market orders in pre-open enabled scrips.
19.	How would my limits be blocked for market orders for Pre-open enabled scrips ?
	As per existing process, limits would be blocked only in case of Buy orders. Similarly, in case of pre-open enabled scrips if Buy market orders are placed during overnight or pre-open timings then the closing price would be considered for computation of limits to be blocked and the amount to be blocked would be considered at 120% of the closing price i.e. Additional 20% of closing price would be blocked for market orders in pre-open session as per the Price Band specified by exchange for pre-open scrips. The additional limits blocked, if any, would be released at the end of pre-open session based on execution price or discovery price used for converting market order to limit if your mrket order remains unexecuted in the pre-open session. The blocking of 120% of closing price is applicable only upto pre-open session i.e. till 9.08 a.m. Thereafter, the existing process of blocking 100% of Last Traded price for market orders during normal trading (i.e. From 9.15 a.m. onwards) would continue Example: ACC is enabled for pre-open session, Closing price = Rs. 100, Pre-open Price Band = 20% ACC Buy Market order to be placed for 300 quantity then the limits to be blocked would be:
	= (Closing price + (Closing Price * 20%))* Quantity = (100 + (100*20%)) * 300 = (100 +20) *300 = Rs. 36, 000
20.	What are overnight orders ?
	Overnight orders are orders which can be placed by you after normal market hours and before the next day's trading session.
21.	In which scrips can I place overnight orders and upto what time?
	Overnight orders can be placed in all scrips i.e. Pre-open enabled scrips as well as other scrips enabled for equity trading. In case of, Pre-open scrips - You can place overnight orders (market or limit price) in pre-open enabled scrips till the beginning of pre-open session i.e. Upto 9.00 a.m. thereafter all orders would directly go in the pre-open or normal market session depending on the order placement time. Other scrips – You can place overnight orders (only limit price) in other scrips till the beginning of normal market session i.e. 9.15 a.m. Thereafter, all orders would be normal market session orders upto end of normal trading hours.
22.	When are the overnight orders sent to exchanges?
	Overnight orders in pre-open enabled scrips shall be sent to the exchange during the pre-open order entry period (i.e. 9.00 a.m. to 9.08 a.m.). In case of overnight orders in other scrips all such orders would be sent to exchange during the normal trading session (i.e. from9 .15 a.m.).
23.	Are there any restrictions in the order placement in pre-open session?
	Yes, you can place orders with only day validity, order type as market or limit and within pre-open price band % for orders in pre-open enabled scrips during overnight and pre-open order placement timings. SLTP, Disclosed quantity and IOC order placement is allowed by exchanges only for normal trading session and not for pre-open session.
24.	From where can I place orders for pre-open session?
	The normal order placement page can be used for order placement in pre-open session as well.
25.	Can I place orders in pre-open session through CallNTrade?
	Yes, you can avail the facility of placing your orders in pre-open session through CallNTrade.
26.	Where can I see my order and trades for the pre-open session?
	You can see all your pre-open as well as normal order and trades in the normal online Equity order and trade books.
27.	Can I cancel the order placed in the pre-open session and from where ?
	Yes, you can cancel the orders placed in the pre-open session during the order cancellation timings specified in the above table. You can visit the normal Equity order book and click the cancel link to cancel your pre-open orders provided you do this within the exchange prescribed timings.
28.	Can I modify orders placed in the pre-open session and from where?
	Yes, you can modify the orders placed in the pre-open session during the order modification timings specified in the above table. You can visit the normal Equity order book and click the modify link to modify your pre-open orders provided you do this within the exchange prescribed timings. The details of modifications allowed by exchanges during pre-open session are as follows: NSE : You can modify quantity You can modify Limit Price (within the price band specified by exchange) You can modify from Limit to Market You can modify from Market to Limit BSE : You can modify quantity You can modify Limit Price Note: Limit to Market and Market to Limit modification is not allowed by BSE.
29.	Do I need to allocate limits for trading in pre-open session?
	Yes, similar to normal trading you are required to keep sufficient limits for order placement in pre-open session as well.
30.	Is the brokerage rate different for Cash in Pre-open and normal trading sessions ?
	No, the same brokerage rates would apply for your transactions in pre-open as well as normal trading sessions.