What is After Market Order (AMO)? – Can You Trade After Market Closure??

What is Market Order?

Remember how people say they are very much interested in the stock market but couldn’t actually allot time for the same. A very similar story is of our friend Shalini, who is a school teacher and is very much interested in trading in the stock market. 

But her hectic schedule doesn’t let her indulge in the market during the regular market operating hours. She asked us to help her, and we told her about After Market Order (AMO). 

Are you wondering what After Market Order means? How is it different from the market time and pre-market orders? What are the benefits of it, and how can you place them? Well, read this article to find out more. 

Content:

What is After Market Order?

When you place an order while the markets are closed, such orders are called After Market Orders. AMO is a kind of advanced order that you place when the market is closed but gets executed at regular market hours. 

AMO in trading provides flexibility to individuals who do not get the time to trade during normal market hours. You can place AMOs in all the market segments after the market closes. We will soon talk about the timing for placing AMOs.

A crucial point to consider while placing an AMO is the fact that just like the name suggests, these types of orders are market orders. Thus, you cannot place a stop loss, bracket, or cover order here. But you can place a limit order. 

What Are the After Market Order Timings?

Normal market hours start at 9:15 am and end at 3:30 pm, as you would know. When you place an order after that, it becomes AMO. There are certain time frames for placing AMOs and that varies for different market segments. 

NSE Equity Market: 3:45 pm to 8:57 am

BSE Equity Market: 3:45 pm to 8:59 am

Equity Futures and Options (F&O): 3:45 pm to 9:10 am

Currency Market: 3:45 pm to 8:59 am

Commodity Market: Any time of the day

Wondering how AMO works while markets are not operating? Well, the next section will satisfy your curiosity. 

How Does AMO Work?

Let us understand this with an example. Imagine you want to place an AMO for 50 quantities of Reliance share on NSE at market rate at 8:00 pm. Once you place an order, it goes to your broker and stays the same until 8:58 am of the next day. 

MIS LImit Order AMO

Once the market starts at 9:00 am, your broking house sends the order to the exchange. Once the market starts at 9:15 am, your order will be placed at the opening price or market rate. 

Now, if you would have placed a limit order of ₹2100, and if the price gets matched in the pre-opening market between 9:00 am to 9:07 am, your order would get executed during that period. But if not, it would get executed after 9:15 am.  

MIS LImit Order AMO

When it comes to limit AMOs, the extent to which you can place them depends on the broker. Some brokers allow 5 percent up or down from the closing price to place a limit order. In simple words, it means that if the closing price of a stock is ₹500, you can place a limit order ranging from ₹475 to ₹525. 

What Are the Benefits of After Market Order?

Some of the benefits of using an AMO are listed below.

  • AMOs provide the opportunity to trade or invest to individuals who cannot do so during regular market hours due to other commitments. 
  • You can always cancel or modify your AMOs, which protects you from any negative news or incidents that may impact the market. 
  • It is available for all the segments of the stock market like equity, F&O, forex, and commodity. 
  • You can place an AMO on weekends as well. 
  • AMOs can be placed for different types of trading options like delivery known as Cash and Carry (CNC), Margin Intraday Square Off (MIS), and Normal Order (NRML).

How is AMO Different from Market Order and Pre Market Order?

You know the market timings now. Any order placed between 9:15 am to 3:30 pm is called a market order. When you place an order from 9:00 am to 9:07 am, it becomes a pre-opening order. And last but not the least, when you place an order from 3:45 pm to 9:15 am (depending on the market segment), it is said to be an After Market Order. 

The only drawback of an AMO is that you are not allowed to place customized orders like a cover order or a bracket order. Placing a stop-loss is also not allowed. 

How to Place After Market Order in  Alice Blue?

To place an After Market Order in the  Alice Blue portal, follow the below steps. 

Ant Web Login Portal
  1. Log in to your  Alice Blue account.
Instrument Search Bar
  1. Search the stock or F&O that you would want to trade. 
Instrument Buy Sell Option
  1. Select the Buy or Sell option. 
MIS Limit Order AMO
  1. Select the type of trade you want, i.e., MIS, CNC, etc. 
  2. Select the AMO option listed on the screen. 
  3. Select whether you want to place a Market Order or a Limit Order.
  4. Enter the quantity you wish to trade. 
  5. Enter the price in case you are placing a Limit Order.
  6. Click on BUY/SELL option given at the right bottom corner. 

And, that’s it. With these simple steps, you are done placing your AMO in  Alice Blue.

Quick Summary

  • When you place an order while the markets are closed, it is called an After Market Order. 
  • You can place AMO from 3:45 pm to 9:15 am, depending upon the market segments.
  • Once you place an order, it goes to your broker and stays the same until the pre-opening of the market the next day. 
  • After which, it is forwarded to the exchange and gets executed once the market opens or the price is matched (in case of a Limit Order).
  • AMOs provide the opportunity to trade or invest to individuals who cannot do so during regular market hours due to other commitments. 
  • You cannot place a bracket order, a cover order, or a stop loss in an After Market Order.

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About Author

Vinayak Hagargi

Vinayak is Impressively Enthusiastic about Financial Markets, Research & Curating Layman-Friendly Content. He has been Successfully Contributing to the Financial Markets for over 2 years & has written over 100+ articles. He aims to continue sharing his knowledge to empower newbies with Relatable, & Easy to Understand Content.

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