What is the Pre-Opening Session? How Does Share Trading Happen?

The pre-opening session in the stock market is a relatively new concept. Typically, the Nepali stock market indicator, NEPSE, is open from 11 AM to 3 PM.

However, before the main trading session begins, there is a 15-minute pre-opening session from 10:30 AM to 10:45 AM. During this time, the price of stocks cannot increase or decrease by more than 2%.

When the market opens at 11 AM, trading starts at the closing prices from the pre-opening session. During this session, the opening prices for that day's trading are determined based on the buy and sell orders investors have placed. NEPSE has stated this.