Can we buy shares after market closes in India: The stock market is a marketplace where people invest their money in order to build wealth.
Unfortunately, many people who are interested in the stock market do not have the time to invest during market hours. There are even instances where individuals would like to buy or sell shares after the market closes.
In such cases, individuals are increasingly seeking greater convenience and flexibility in executing trades. And a common question that arises in the minds of individuals is “can we buy shares after market closes in India?”.
In this article, we will discuss the answer to your question “can we buy shares after market closes in India” and will cover other concepts associated with it.
Can We Buy Shares After Market Closes In India?
The Indian stock market is only open during certain hours, typically from 9:15 a.m. to 3:30 p.m. IST during which your buy and sell orders will get executed. But it is possible for individuals to place orders after normal trading hours. This is done through After Market Order.
What Is After Market Order?
After-market orders are orders that can be placed after the market closing hours. This is an advanced order that individuals can place when the market is closed but is executed during regular market hours.
While placing an AMO, you cannot place a stop loss, bracket, or cover order. In AMO, only market and limit orders are permitted.
Timings Of After-Market Order
The time frames for placing AMOs under different market segments are as follows:
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
How Do After Market Orders Work?
Now that we have understood the meaning of aftermarket order and the timings to place aftermarket order, let us now take a look at how aftermarket order works with the help of an example.
Suppose you place an after-market order for the shares of Tata Motors at the market price at 5 p.m. The order is sent to the broker and will remain unchanged until 8:58 a.m. the next day.
These orders will be sent to the exchange by your broking house when the pre-market opens. The orders sent to the exchange will be placed at the market rate or opening price when the market starts trading at 9:15 am.
If you place a limit order for $435 and it is matched in the pre-market between 9:00 am and 9:07 am, your order will be executed during that time period. If not, it will be carried out after 9:15 a.m.
When it comes to placing limit orders in AMOs, the extent to which you can set a limit will vary depending on the broker. Some brokers allow a 5% upper and lower limit when placing a limit order.
In other words, if the stock closes at the price of Rs.500, the limit order you can place can range from 475 to 525.
Benefits Of After Market Order?
The following are the benefit of placing an AMO order
- Quick Response in the Market: The stock market is extremely sensitive to current news and events. These set the tone for what is to happen in the market. After-market orders give individuals a chance to react to news and events more quickly than during restricted trading hours. Some companies release quarterly earnings reports after the stock market closes. In such cases, individuals would be able to react immediately with the help of AMO.
- Convenience: Many individuals who do not have the time to invest during normal trading hours miss out on good opportunities from the stock market. After-market orders could make it easier for these individuals to be more involved in the market and make more profits.
- Avoid Losses: After-market orders may also help traders reduce losses by allowing them to place necessary orders that will allow them to exit a losing position when regular trading resumes.
Also Read: 8 Best Books For Intraday Trading – Top Reads For Beginners!
In Closing
In this article, we discussed the answer to the question “Can we buy shares after market closes in India” and also discussed various concepts under After Market Orders
In conclusion, after-market orders give investors greater flexibility and the ability to react to news and events that occur outside of regular market hours.
However, it is important to consider the potential risks and additional fees that may be associated with this type of trading.
Before engaging in after-market trading, as with any other type of investment, it is critical to thoroughly research and understand the risks and potential rewards.
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