What is After Market Order, can I place a trade after market hours?
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After market order, AMO is placed-in to do trading after market hours i.e., after 3:30 PM. It is usually done post-market hours of the trading day. The placement of an order should be between post-market hours of the current day and the next trading day.
The purpose of the AMO order is to improvise the order performance. The AMO orders are opened on the next day in the stock exchange at 09:00 am. The time period between 9:00 am to 9:07 am is called pre-market hours, where all the AMO orders are executed.
Trader can place an AMO at any time between 03:45 PM and 08:57 AM (National Stock Exchange), and for BSE it can be anytime between 03:45 PM and 08:59 AM. However, the best time for the AMO to be placed in the stock exchange is between 05:00 PM and 08:50 AM at NSE. It is a time ideal for NFO and Currency segments.
Place an AMO:
An investor before buying a stock must fix the buying price. In such a case first thing, one should keep into account is the closing price of the day. The investor can either quote five percent more or less than the price at the end of the trading day. The investor can choose the range of the preferred share. Say, the closing share price is INR 100 then it can be quoted for INR 95.00 or INR 105.00
AMO: Rejection
There are two instances in which AMO gets rejected and that means the client/investor is not allowed to trade on the stock exchange. It does happen if the client account is in Dormant Status. A Demat account/trading account gets into dormant status if the investor doesn’t transact at the stock exchange past six months.
Cancellation of AMO:
The investor can cancel before the trading session of the next day begins. When the following day’s session begins an investor may not find sufficient margin in the margin calculation process usually dealt at the beginning of the day. In such circumstances, the investor must check the ‘order status’ that is found in the order report during market hours. An investor can cancel such aftermarket orders before it gets registered at the exchange.