What do the NSE Series – EQ, BE, BL, BT, GC, IL & IQ Mean ?
You may have watched on business news channels a pre-open session for NSE and BSE from 9.00 AM to 9.15 AM during market days. But you actually know how your placed orders are executed during this session?
It is very interesting and must know factor for all who are interested to invest in stocks.
Before we proceed let us look for the types of orders you can place in market. Their are two types of order placing methods.
1) Market orders :- These are the orders where you have not specified any price while buying or selling. Hence such orders execute as per the availing market rates.
2) Limit orders :- These are the orders where you have specified the price and quantity for buying or selling. These get executed once find the matching orders.
Pre-open session as I told above starts from morning 9.00 AM to 9.15 AM during the market days. This 15 minutes consists of mainly 3 slots.
1) 9.00 AM to 9.08 AM :- Order collection period-During this period you can place the orders, modify or cancel them.
2) 9.08 AM to 9.12 AM :- Order matching period and trade confirmation period-During this period placed orders are confirmed based on the price identification method called “Equilibrium price determination” or “Call auction”. Will discuss about these methods in Next post. During this period you are unable to modify or cancel the placed orders.
3) 9.12 AM to 9.15 AM-It is called buffer period and which facilitates transition from pre-open to normal market session.
Right now, only the index stocks are included in this session.
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