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Big Change for F&O Traders

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  Big Change for F&O Traders: How Share Closing Price Will Be Decided Now If you trade in the stock market, especially in F&O (Futures & Options) , there's an important change you should know. Until now, the closing price of F&O stocks was calculated using the average price (VWAP) of trades during the last 30 minutes of trading. From now on, that will change. The stock exchange is introducing a Closing Auction Session (CAS) for F&O stocks. What is CAS? CAS stands for Closing Auction Session . It is a special 15-minute session held before the market closes to decide the final closing price of an F&O stock. Instead of taking an average price, the exchange will match buy and sell orders. The price at which the maximum orders match will become the official closing price . What will happen? Normal trading will continue until 3:15 PM . After 3:15 PM, cash market trading for F&O stocks will stop. Traders can place orders during the auction session. The excha...

T+1 Settlement Cycle

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  Stock Market Shifts to T+1 Cycle   Indian stock market has shifted to a shorter settlement cycle on 25th Feb 2022. In the first phase, 100 stocks based on the lowest market capitalization on NSE were put under the new settlement cycle. It means shares falling in this settlement cycle will get their money or shares delivered within 24 hours. 500 more stocks will be added on the last Friday of every month. This move of reducing the settlement cycle will increase retail participation because of more liquidity within the available funds.