AMO Meaning in Share Market

AMO meaning in share market

Many people want to invest in the stock market, but due to their busy schedules, they are not able to buy the stocks between the market working hours.

Do you want to place the order in the stocks before the market gets open? Do you know about AMO? Read on if you want to invest in the stock market before the market gets open in the morning.

What is AMO in the share market?

The full form of AMO is After Market Order which is a feature used to place orders before the share market opens the next day. In simple words, you can invest in the share market before the share market opens the next day. The investor has to check the timings before one day to place the order on time. 

Investors can normally place orders between 4:00 pm to 9:14 am. If you are busy during market hours, from 9:15 am to 3:30 pm, you can place an order in the closed hours with the help of an after-market order(AMO) feature available in the application that the investor is using for trading. 

 Timings of AMO for different segments

  1. Equity/Cash market- 5:00 pm to 8:59 am
  2. Equity F&O market- 5:00 pm to 9:14 am
  3. Currency market- 5:00 pm to 8:59 am
  4. Commodity futures market- 12:01 am to 9:59 am

Also Read: Can a Government Employee Invest in the Share Market?

How to Place an AMO Order?

There are many brokers who provide AMO features to invest in stocks post the market hours. Some of the top brokers are Zerodha, Upstox, Angelone, and Groww. They provide the AMO feature in their applications, so let’s take the example of Zerodha to place an After Market Order (AMO).

Steps to place an AMO order through Zerodha kite App:

  1. Open Zerodha Kite App.
  2. Login in kite with your credential.
  3. Search the stock you want to place an AMO order.
  4. You will see a tab of horizontal incodes “Regular”, “Cover”, “AMO”.
  5. Select “AMO.”
  6. Choose either CNC or intraday (MIS) as per your preference of order type.
  7. Select either MKT or LMT order. You cannot choose an SL or SL-M order for AMO.
  8. Enter the quantity and the price.
  9. Click on “Buy.”

Your AMO will be placed. It will be executed the next day when the market reopens.

Benefits of AMO in Share Market

  • It is a beneficial feature for people who do not have time to spend in the stocks during the share market running hours.  
  • The price of the stocks becomes motionless after the market time gets over, so the investor can examine the performance of the stocks in detail to decide the stock for investment. 
  • You can employ the margin that you got on After Market order(AMO) intraday orders. 
  • Investors will not have to track the stock prices continuously; you can choose the stocks wisely before the market hours with the help of the After Market Order(AMO) feature.
  • Investors can change, modify, or cancel their After Market Order(AMO) order if they find some change after analysis and order.
  • After Market Order(AMO) can be placed in the currency share and assets.  
  • All your After Market Orders(AMO) orders will get shifted to the market when opening time starts, so you do not have to worry about anything after placing an AMO order.

Also Read: How not to Lose Money in Stock Market?

Can we Place After Market Orders during Trading Hours?

No, if you have chosen AMO, you cannot place an order during working hours. If you try to place an order during market hours, it will show an error or get rejected. 

Can we Place an AMO Order for the Price outside of today’s Circuit Limit?

The new circuit limit gets updated on the app every day, so you cannot place an AMO for the price outside today’s circuit limit; if you try so, it will show an error, and your AMO will not get placed. 

What type of orders can be placed in AMO?

You can place only limited orders in the cash and margin segment. 

Can I place AMO orders for Intraday Trading?

Yes, you can place AMO orders for intraday trading because it is the same as a regular order. The only difference is that you can place an order in non-market hours through the AMO feature.

Also Read: New Issue Market: Types, Features, Functions

Where can I place AMO?

You can place an After Market Order(AMO) on any trading platform that works as a broker. Some might charge some commission, and you can choose any trading platform.  

Final Thoughts

If you are interested in the share market and want to invest, but you do not have time during the share market house, place After Market Order(AMO). As we discussed the benefits of AMO and how to use it, you can happily invest in stocks in non-working hours.