At Dhan, we discuss, interact and collaborate closely with our users to ensure we raise the bar for stock trading and investing experience.
In our early beta phase, Dhan was the first (and continues to be the only) investing platform to bring in-line placement of After Market Orders (AMO) in a super simplified and integrated view and experience (Feature Announcement - After Market Orders on Dhan).
We are extremely excited to announce that we have further upped this experience and now have enabled users to place transactions in the Pre-Open Trading sessions of Exchanges. Same seamless experience, enhanced and made incredible again.
Note: This feature is for advanced traders on Dhan, ones who really know what happens in the Pre-Open trading sessions. For those who don’t, let us explain.
Most users think trading in exchanges start at 9:15 am, well they are not wrong. It does start at 9:15 am but before that exchanges do a pre-open session from 9:00 am to 9:15 am everyday which is called the Price Discovery session. Simply stated it is decided on an equilibrium price or price at which the stock prices will at 9:15 am for all to trade, in-turn which is the open price of the day, over previous closing session.
9:00 AM to 9:07 AM : Order Placement Time
9:07 AM to 9:15 AM : Order Matching and Price Discovery
When you place orders via Dhan now for Pre-Order session, your Order will be sent to exchange in the first half, 9:00 AM to 9:07 AM order placement time, you can modify and cancel your orders in this time frame.
Post 9:07 AM, the exchange will stop taking orders, and for any order that is placed on Dhan now will be treated automatically as an AMO order that will be sent to the exchange when the trading session starts at 9:15 AM with the price discovery mechanism.
Is the order execution guaranteed on pre-open time? No, it depends completely on the exchange and the price discovery mechanism that will match all orders on the buy and sell side. All orders that remain unmatched or un-executed in this period will be executed when the trading session starts at 9:15 AM.
Should I trade in the Pre-Open session, just because now the feature is available on Dhan?
No, we don’t recommend that for all.
This feature is for advanced traders only, so do this only and only when you know what you are doing, else avoid as there is very high volatility in this period. And for those Super Traders who know what pre-open session is all about, we welcome you to experience this on Dhan.
As always, no feature on Dhan is final. It’s always our first version, and we continue to make things simpler and better for our users based on your feedback and suggestions.
Enjoy your Dhan Experience!