What is AMO and its benefits
After Market Order (AMO) facilitates placing orders after regular market hours. It is an advance order placed for the next trading day. It is for those customers who are busy during the market hours but wish to participate. AMO order time for equity delivery segment is,
NSE: 3.45 PM to 8.57 AM on the next trading day
BSE: 3.45 PM to 8.59 AM on the next trading day
Benefits of AMO
- AMO is for those customers who are busy during market hours but wish to participate.
- In post market hours trading, one need not actively track the price movements of a stock during market hours. You can plan your orders at leisure after doing research before the market opens the next trading day.
- Your presence is not needed at the exchange to execute the order.
- Margin Trading Facility is available for AMO orders on all platforms: KEAT, KST, website.
How does it work
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Using the After Markets Orders facility is very simple. All you need to do is log into your Kotak Securities trading account, and choose the AMO option. You can then place your order.
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This facility is available in the time slots mentioned below:
- 4.15 p.m. to 9.30 p.m.
- 10.30 p.m. to 7.30 a.m.
- 8.30 a.m. to 9.00 a.m.
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When you place an AMO, you have to consider the closing price. However, you have the flexibility of choosing a price which is 5% more or less than the closing price. For example, if the price of a stock you are buying is Rs. 100 at the end of the day, you have the option of choosing a price in the range of Rs. 95 and 105.
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Using the previous example, if it is a buy order and is placed at +/-5% and the share price opens at Rs. 105 on Tuesday, your order is executed at Rs. 105.
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After Market Orders can also be placed through the Call & Trade facility. Using this service, you can call our customer care executives, who will then place the order on your behalf. Simply call the toll free number 30305757 between 4.15 pm and 6.00 pm or 8.30 am and 9.00 am.
Frequently Asked Questions
Can I place the order at market price?
You can place the order only with a +5% or -5% range of the closing price of the stock at the end of the day.
What do I need to be cautious about?
It is advisable to place a ‘limit order’ at a price range that is closer to the previous day's closing price instead of a market order. This means, you are shielding yourself from buying at a price too high or selling at a price too low. This helps you avoid the possibility of getting a freak rate, because market orders are executed at the best possible counter rate.
How does it work?
All AMO’s will be placed in the market in the order of the price bands. For instance, the market orders will be placed first and then all other orders are lined on the basis of the price band in ascending order.
Which are the exchanges where I can place AMOs?
You can place AMOs in the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
What is a Buyback/Takeover/Delisting?
My order is getting rejected with the following error – ‘Order price is outside the trade execution range. Try placing the order again
My order is getting rejected with the following error – ‘The order was rejected to avoid self trade. Try placing the order again’.
Why was the stop loss executed even though the price did not breach the trigger?