Traders and investors are human and most humans are driven by beliefs, especially the ones that bring good luck. One such belief is that placing a trade on the Muhurat trading session can be fruitful.
What is Muhurat Trading Session?
Muhurat is a word rooted in Sanskrit. It is interpreted as a measure of time or the right time to carry out important actions. Thus, the meaning of Muhurat is auspicious, opportune, or simply good.
The term holds meaning in the financial markets as well – traders and investors believe that buying and selling securities during Muhurat can bring wealth, prosperity, and good luck.
That’s why exchanges like NSE, BSE, MCX, MSE, and more organize a special Muhurat trading session during Diwali. In fact, you could say that this practice is akin to a ritual endemic to India alone.
While the Muhurat time varies every year, the core trading window is always set for an hour. There is a pre-open and square-off session as well which lasts for minutes.
Fun fact: Diwali marks the beginning of the new year and the Muhurat is known to be the time during which businessmen open their books of accounts.
Muhurat Trading Timings 2022
During this time, you will be able to place market and limit orders. The exchange will collect your order and match it with a trader who placed the opposite order from 6.08 PM to 6.15 PM.
The regular Muhurat trading time for the equity segment is 6.15 PM to 7.15 PM. This period is known to have high liquidity and volumes because trading during Muhurat is a widely practiced ritual in India.
Finally, there will be a post-market session in the equity market from 7.25 PM to 7.35 PM. Trade modification can be done till 7.45 PM.
The Muhurat trading f&o time for equities is the same as the equity cash market without the pre-open session.
However, the commodity and currency market will not have a pre-open session. The regular timing for Muhurat trading in the commodity derivatives market is from 6.15 PM to 7.15 PM.
You’ll be able to modify your commodity futures and options orders till 7.25 PM. That’s 10 minutes shorter than the trade modification time for the equity market.
Lastly, the currency derivatives market will be active from 6.15 PM to 7.15 PM during Muhurat trading in 2022. Forex traders can modify their orders till 7.25 PM for INR pairs and cross-currency pairs.
Annulment of trades can be done till 7.30 PM on the forex derivatives market. Now that we’ve mentioned what the time is for Muhurat Trading, there are a few more minor details that you should know.
Intraday trading positions on Muhurat will be auto-squared off at 7.05 PM for all segments. Best part?
You can trade with Rs. 0 brokerage across all segments on Dhan only during Muhurat trading day! Open Account Now
Muhurat Trading Timings 2022 for All Segments
|Equity||6.00 PM to 6.15 PM||6.15 PM to 7.15 PM||7.25 PM to 7.35 PM||7.45 PM|
|Equity F&O||–||6.15 PM to 7.15 PM||–||7.45 PM|
|Commodity||–||6.15 PM to 7.15 PM||–||7:25 PM|
|Currency||–||6.15 PM to 7.15 PM||–||7:25 PM|
History & Significance of Muhurat Trading
The concept of Muhurat trading stems from the traditional business community. Diwali and Laxmi Pujan mark the beginning of the Hindu new year known as Samvat.
The business community would open their books of accounts on the same day. But, the books weren’t opened at any random time.
New trades and business activities took place during the Muhurat as an ode to the Goddess Laxmi, the symbol of wealth and prosperity.
The same practice has trickled down to the financial markets as well, starting with BSE which organized the first Muhurat trading session in 1957.
Then and now, traders & investors buy and sell securities like stocks, commodities, currencies, and derivatives to welcome good luck and prosperity into their financial lives.
How to Start Muhurat Trading?
We’ve spoken about the auspiciousness of Muhurat trading and the belief that the concept carries with it. However, achieving that may not be possible without a solid investing app & web trading platform.
That’s why you must select one that is known to offer reliable services with a host of awesome features. For example, Dhan offers a lightning-fast experience for all segments and traders.
- Intraday trading on Muhurat: Instant margin on 850+ stocks
- Option trading on Muhurat: Advanced Option Chain with Greeks
- Futures trading on Muhurat: TradingView charts with unlimited indicators
- Commodity trading on Muhurat: Dedicated commodity dashboard with one trading account for all segments
- Currency trading on Muhurat: INR and cross-currency pair futures and options
Best part? All of these and more are accessible through one trading & demat account on Dhan. Want to start Muhurat trading the right way? Open Dhan Account Now!