What is After Market Order (AMO) & How
I am a
regular trader in the market. One day I noticed that a stock that I was holding
made a sudden movement during the last hour of the trading session. I was of
the view that the stock will open at a high the next day and then start moving
downwards. So I decided to sell the stock as soon as the market opens. However,
due to some circumstances, I was not able to execute my trade and that
opportunity was gone.
the question that arises is how you could have avoided this. The answer is “After
Market Order (AMO)”. After market order is a facility that brokers provide to
the traders and investors to purchase or sell stocks after or before trading
hours. NSE and BSE open at 9.15 a.m. and close at 3.30 p.m. Saturday and Sunday
are the market holidays. If you have been aware of the AMO facility you would
have been able to place an order after or before the market hours and made a profit
on the stock you are holding in your demat account.
How AMO Works?
can be placed when the market is closed. The orders placed will be sent to the
exchange before the opening of the market the next day. To place an AMO order
you need to log in to your broker's account online and while placing the order
you must select the “AMO” option. The timings to place an AMO order will vary
from broker to broker.
must ensure that there is sufficient cash balance in the trading account to
place an AMO order. Before placing a sell order you must ensure that stock is
available in your trading account. If there is any shortfall of funds or
securities in your account, the order will be rejected by the broker before
sending it to the exchange.
Also read - What is Pre-Open Market Session in Stock Market and How It Functions?
Features of AMO
· AMO can be placed as “Market Order” or “Limit
· Modification or Cancellation can be done
· Bracket order and cover order cannot be placed
· AMO does not support stop loss orders and
disclosed quantity orders
· The price range for limit order in AMO for a
stock would be specified by the exchange
Benefits of AMO
· Those investors who are not able to track the
market during trading hours, this facility is useful to them. They can analyze
all the news and information along with the market behaviour before placing an
· You may modify or cancel an AMO in case there
is any negative development over the night.
· You may place SIP orders in stock using this
· Currency and commodity segments also support
· In case of any urgent or unforeseen
circumstances, AMO is a very useful facility.
above mentioned are some of the key features and benefits that one must know
before using the AMO facility. With the introduction of AMO, trading and
investing in stocks has become more convenient. This added facility is much
more beneficial for those who are not able to participate in the stock market
due to time constraints.