AMO or After Market Order allows traders to buy or sell after the market hours or when the market is closed. It is no different from the regular market, except that you buy or sell after the market is closed.
Also read: What is IPO? [Definition and Advantages]
People who cannot keep a regular watch on the market from 9:15 am to 3:30 PM can use this window to trade though the market is closed. But there are a few questions that you might want to ask –
- What can you trade, and what is the time frame?
- When will your trade be pushed to the Market?
- Benefits of After-Market Orders
Now you know what an After Market Order (AMO) actually means; we will now answer questions related to it.
What Can You Trade, and What is the Timeframe?
Aftermarket order does provide you with a window to buy/sell after the market is closed. But there is a time frame during which you can buy or sell individual entities.
That said, here is the block for entities with their time frame from Zerodha –
|Equity||3:45 PM to 8:57 AM (NSE) & 3:45 PM to 8:59 AM (BSE)|
|Currency||3:45 PM to 8:59 AM|
|F&O||3:45 PM to 9:10 AM|
|MCX||Anytime during the day, if placed during market hours it will go through the next day at 9:00 AM|
Zerodha – Subject to change*
Different investment platforms or brokers have their own time frames; as we saw above from Zerodha, we will take one glance at TradeJini and their time frame for After Market Orders(AMO).
|Equity Spot / Cash Market||5:00 PM to 8:59 AM|
|Equity F&O Market||5:00 PM to 9:14 AM|
|Currency F&O Market||5:00 PM to 8:59 AM|
|Commodity Futures Market||12:01 AM to 9:59 AM|
TradeJini – Subject to change*
When we compare the AMO for Zerodha and TradeJini, we can find subsequent slot differences for entities. If you plan for After Market Orders, get the right time frame from your trading platform and then buy or sell during the time frame.
When Will Your Trade be Pushed to the Market?
After Market Orders let you buy/sell entities, but they will not be pushed to the market immediately.
Your orders will be pushed to the market the next day when the market opens.
That’s right. Though you have made an order today, that doesn’t imply your trade be pushed to the market immediately. Since you have made the trade after the market is closed, the trade will be pushed to the market only when the market opens, i.e., the next day. It does not directly interact with the market; it stays with the broken and is pushed only when the market opens.
Here are time frames when the market will accept your trade the next day,
|Equity spot/cash Market||9:00 AM|
|Equity F&O Market||9:15 AM|
|Currency F&O Market||9:00 AM|
|Commodity Futures Market||10:00 AM|
TradeJini Market Time Frame for Pushing AMO, next day
Benefits of After-Market Orders
- “After Market Orders” are beneficial to those traders that want a certain time before making the trade. They can watch the trends throughout the market hours and make a trade after the market closes.
- It gives you time to plan your orders before the market opens the next day.
- Time Frame for AMO by Zerodha
- Time Frame for AMO by TradeJini