What is AMO Order timing in Zerodha
What is AMO Order
Zerodha is a popular discount brokerage firm in India that offers various investment and trading services to its customers. One of the features offered by Zerodha is the AMO (After Market Order) facility, which allows customers to place orders for stocks after regular market hours.
What is AMO Order timing in Zerodha?
The regular market hours for trading in Indian stock exchanges (NSE and BSE) are from 9:15 AM to 3:30 PM on weekdays, excluding holidays. However, the AMO facility allows customers to place orders for stocks after regular market hours, between 3:40 PM to 8:00 AM on the next trading day. This can be particularly useful for customers who may not be able to actively participate in the market during regular market hours, but would still like to place an order for a particular stock.
To place an AMO order, customers need to log in to their Zerodha account and select the AMO option while placing the order. The process of placing an AMO order is similar to placing a regular market order, with the only difference being the timing of the order placement.
It is important to note that the execution of AMO orders is subject to certain conditions and limitations. For example, the price of the stock at which the AMO order is placed may not be the same as the price at which the order gets executed. This is because the price of the stock can fluctuate significantly between the time the AMO order is placed and the time it gets executed during regular market hours.
Zerodha provides an additional feature called "Pre-AMO" which allows customers to place orders after-market hours from 4:00 PM to 9:00 AM, which gives a 30-minute window before the regular AMO order timing starts. Pre-AMO orders allow traders and investors to take advantage of the latest news and events, both domestic and global, which may have an impact on the stock prices, before the regular market hours. It is also important to note that the AMO facility is available only for equity trading and not for other investment instruments such as mutual funds, commodities, or currencies.
Conclusion
The AMO facility offered by Zerodha provides a convenient way for customers to place orders for stocks after regular market hours. While it can be a useful feature for customers who may not be able to actively participate in the market during regular market hours, it is important to be aware of the limitations and conditions associated with the execution of AMO orders. Customers should also exercise caution and perform their own research and analysis before placing any orders through the AMO facility.
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