What is cut off time for intraday trading
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Best Time to do Intraday Trading in India
Intraday trading occurs during regular market hours (9:15 AM to 3:30 PM), many traders wonder if they can continue trading after 3 PM and whether it is possible.
Even though you have time till 3:30 PM to trade, there are some risks associated with that.
I will explain the pros and cons of doing intraday trading after 3 PM and also common questions and answers to help you make proper decisions in the market.
Intraday Timings in India:
Indian stock market operates through two primary exchanges: the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The regular trading hours for both exchanges are from 9:15 AM to 3:30 PM, Monday to Friday, excluding market holidays.
This period is commonly referred to as the “trading window” and represents the time frame during which most intraday trading activities take place.
Can I Do Intraday Trading After 3 PM?
While the official trading hours end at 3:30 PM, it is important to note that certain activities related to intraday trading can still occur after 3 PM. However, there are some limitations and considerations to keep in mind:
Few brokers auto-square off the positions between 3:00 PM to 3:30 PM at market price.
So be careful while trading after 3:00 PM. It is best to square off the position before 3:00 PM.
Risks of Trading After 3 PM
Trading after 3 PM carries additional risks, including lower liquidity, wider bid-ask spreads, and increased price volatility.
Traders need to assess their risk tolerance and carefully consider the potential impact of trading after regular market hours.
Best Time to Do Intraday Trading:
The best time to engage in intraday trading depends on various factors, including market conditions, volatility, and personal trading preferences.
However, many experienced traders consider the first hour of trading, known as the “opening bell (9:15 to 10:15 AM),” and the last hour of trading, known as the “closing bell (2:30 to 3:30 PM),” as the most favorable times for intraday trading.
During these periods, volatility is high, resulting in increased trading opportunities and liquidity.
Closing Auction Trading:
After 3:30 PM, exchanges conduct a closing auction session, also known as the “closing bell,” to determine the closing prices of stocks.
During this period, traders can place orders to buy or sell securities at the closing price, but these orders are executed at the end of the auction, typically around 3:40 PM.
After-Hours Trading:
Some brokers allow after-hours trading, also known as extended-hours trading, which allows investors to trade securities outside of regular trading hours.
However, after-hours trading usually has lower liquidity and higher volatility, making it riskier than regular market hours.
Derivative Contracts:
In India, derivative contracts such as futures and options have specific trading hours that may extend beyond regular market hours.
Want to know what are Futures & Options? Here are the Best YouTube channels to learn F&O.
You should be careful while trading after trading hours because the trading volumes and liquidity tend to be lower during extended trading hours.
FAQs:
Q1: Can I place intraday orders after 3:15 PM?
Ans: Yes, you can place intraday orders after 3:15 PM, but they may be auto-squared off by your broker. Try to close the positions before 3:00 pm, why risk your money at closing hours?
Q2: What is the Closing Auction Session?
Ans: The closing auction session is a period after regular trading hours during which exchanges determine the closing prices of securities through an auction process. Traders can place orders to buy or sell securities at the closing price during this session.
Q3: Is After-hours trading available in India?
Ans: Yes, some brokers in India offer after-hours trading, allowing investors to trade securities outside of regular trading hours. However, after-hours trading typically has lower liquidity and higher volatility than regular trading hours. It is not suggestible for beginners to trade at after-hours sessions.
Q4: Are derivative contracts traded after 3 PM?
Ans: Yes, derivative contracts such as futures and options may continue trading after 3 PM, but trading volumes and liquidity tend to be lower during extended trading hours.
Q5: What are the risks of trading after 3 PM?
Ans: Trading after 3 PM carries additional risks, including lower liquidity, wider bid-ask spreads, and increased price volatility. Traders should assess their risk tolerance and carefully consider the potential impact of trading after regular market hours.
Q6: Can I use technical analysis for intraday trading after 3 PM?
Ans: Yes, technical analysis can be used for intraday trading after 3 PM, but traders should adjust their strategies and risk management techniques to account for lower liquidity and increased volatility.
Q7: How do I place orders for after-hours trading?
Ans: To place orders for after-hours trading, you will need to use a broker account that offers this service. Contact the customer support executive to check whether this service is available or not.
Q8: Can I trade international markets after 3 PM?
Ans: Yes, some brokers allow us to trade international markets after 3 PM, depending on the market’s operating hours and the availability of after-hours trading
Intraday Trading Cut off Time
Yes, you can do intraday after 3:00 pm and before I continue with the activities that trigger after 3:00 pm you must understand the working time schedule for Intraday trading.
Time schedule for Intraday Trading:
The stock market operates between 09:15 am and 03:30 pm (Indian Standard Time) and the operating clock cycle repeats from Monday to Friday.
Every day, the stock market runs three sessions namely pre-opening (09:00 am to 09:15 am), normal (09:15 am to 03:30 pm) & closing (3:30 pm to 04:00 pm)
Let us concentrate on your query, can I do intraday trading after 03:00 pm. Yes, you will have gone close to the post closing session that begins at 03:30 pm.
Points to Remember!
After 03:30 pm, the stock exchange never entertains selling/buying activities but other functionaries associated with the stock trading continue to perform.
The stock markets conduct two different activities, first, begins at 03:30 pm and lasts for 10 minutes, second, begins at 03:40 pm and lasts for next 20 minutes.
3.30 pm – 3.40 pm
To determine the closing price of the stock in a day, you will have to consider the securities that operate between 03:00 pm and 03:30 pm. Then, calculate the average price of those operated securities and they are Nifty, Sensex, S&P Auto, and so on.
Likewise to determine the closing price of the sector indices, you will have to adopt weighted average prices of the listed stocks .
3.40 pm – 4 pm
You are free to place an After Market Order, AMO, that means, you can bid for the next day’s trade after the closure of the stock markets at 3:30 pm.
The stock markets shall check for the buyers and sellers in this time and on their availability, the markets shall accept all bids.
The bids that are applied during this period are independent of the opening price of the following day, and such AMOs are dealt as per the agreed upon price.
You can benefit (profit) with the deals belonging to the agreed-upon price if the opening price is higher than the closing price.
If the closing price is higher than the opening price then you will be given an option to cancel your bid-agreement and the usual time allotted is between 09:00 am and 09:08 am.
You can execute your trade plan independently or approach a discount online stock broker for guidance. Here, you can depend on stock brokerages like Zerodha, Uptsox, Angle One Online Trading, ICICI bank, etc.
Auto square off timings :
You can hold the open intraday positions during the intraday trading but the positions will be automatically squared off by the zerodha risk management team.
If zerodha conducts auto square off for your stocks then it will charge you with INR 50 + 18% GST.
However, it is the clients responsibility to close the intraday positions within the stipulated time frame.
The stock markets have set a deadline for the auto square off the different operating securities. They are equity/cash (3:20pm) : equity derivatives (03:25 pm) : currency derivatives (4:45 pm) and for commodities (25 minutes before the closing bells ring)