How is the NSE/BSE Stock open Price determined?
The opening price of the NSE/BSE stock is determined during the call auction. When a stock exchange opens, each stock has an initial trading price at which it is bought and sold later on the first trade of the day. It happens frequently that, the security's open price will differ from its closing price of the day before.
When the order collection period is over, order matching period starts in the following arrangement:
- Eligible ‘limit’ orders are matched with eligible ‘limit’ orders.
- Remaining eligible ‘limit’ orders are matched with ‘market’ orders.
- ‘Market’ orders are matched with ‘market’ orders.
The equilibrium price found in pre-open session is set as the opening price for the share. However, if you want to trade in the stock or commodity market then you can take the help of an experienced advisory firms to get the profitable best commodity tips based on technical and fundamental analysis of market.
(Source: https://www.quora.com/How-is-the-NSE-BSE-Stock-open-Price-determined )
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