When Does AMO (After Market Orders) Get Executed in the Stock Market?

Investors who cannot track the stock market during regular hours often rely on After Market Orders (AMO). These orders allow them to buy or sell shares outside of trading hours with the assurance that their orders will be queued for the next session. The critical question for most traders is: when does an AMO order actually execute? This article explains the concept, timings, execution process, advantages, risks, and practical tips so you know exactly how AMOs work in the Indian share market.

What Are After Market Orders?

An After Market Order (AMO) is an order type that lets you place buy or sell instructions when the market is closed. These orders are queued by your broker and pushed to the stock exchange once trading resumes. AMOs are particularly useful for working professionals or anyone who cannot actively track the markets during the day.

Common Types of AMO

• Market Order: Executes at the prevailing market price when the market opens.

• Limit Order: Executes only if the market reaches your specified price.

• Disallowed Types: Stop loss, bracket, and cover orders are often not allowed as AMOs.

Regular Market Orders vs After Market Orders

Also Read: Different Types of Stock Market Orders

Stock Market Sessions and AMO Placement

To understand AMO execution, it is important to know how stock market timings work in India:

• Regular Trading Hours: 9:15 AM to 3:30 PM (Monday to Friday)

• Pre-open Session: 9:00 AM to 9:15 AM, where order matching and price discovery take place

• Post-market Session: 3:40 PM to 4:00 PM for order confirmation and settlement

When Can You Place an AMO?

Most brokers allow AMOs to be placed between 3:45 PM and 8:59 AM the next day. Some extend this window up to 9:07 AM. The exact cut-off depends on your broker’s policies.

When Can You Place and Execute AMO Orders?

The timings for placing and execution of AMO orders depend on the segment you are trading in. Below is a segment-wise breakdown:

Equity Segment (NSE & BSE)

• Placing Window: 3:45 PM to 8:59 AM (some brokers allow till 9:07 AM)

• Execution: Orders are sent to the exchange at 9:00 AM during the pre-open session. If matched, they execute between 9:00 AM and 9:08 AM. Otherwise, they carry forward to the regular market opening at 9:15 AM.

Derivatives Segment (Futures & Options)

• Placing Window: 3:45 PM to 9:10 AM (varies by broker)

• Execution: Orders are released to the exchange at 9:15 AM when F&O trading begins.

Commodity Segment (MCX)

• Placing Window: After 12:00 AM until market opens the next day.

• Execution: Commodity AMOs are sent to MCX at 9:00 AM (for morning session) and 5:00 PM (for evening session), depending on the contract type.

Currency Segment

• Placing Window: 3:45 PM to 8:59 AM

• Execution: Orders are released to the exchange at 9:00 AM in the pre-open and get executed at market opening (9:00 AM to 9:15 AM).

How Execution Price is Determined

• Market Orders: Executed at the opening market price. If liquidity is low, execution may happen at the next available price.

• Limit Orders: Executed only if the stock trades at or better than your limit price.

• Price Range Restriction: Many brokers allow only a 5 percent range above or below the previous closing price when placing AMO limit orders.

Broker and Exchange Variations

While the core mechanism is the same across NSE and BSE, brokers may have slight variations such as:

• Different cut-off times for accepting AMOs

• Restrictions on certain order types

• Varying treatment if the order is not executed in the morning session

Advantages of AMO

• Convenience of placing orders outside trading hours

• Ability to respond to overnight news and events

• Useful for investors who cannot monitor markets actively

Risks and Limitations of AMO

• Price Gaps: Stock may open much higher or lower than the previous close

• Slippage: Market orders may get filled at an unfavorable price if liquidity is thin

• Non-execution: Limit orders may remain pending if the stock never touches your specified price

Best Practices for Using AMO

• Prefer limit orders over market orders to avoid surprises

• Place orders well before cut-off times

• Check your broker’s exact AMO policy

• Review corporate actions or earnings announcements that could affect opening prices

Common Misconceptions About AMO

• Myth: AMO executes at the previous day’s closing price

• Truth: Execution happens only at the next day’s opening price or when your limit price is reached

• Myth: All order types are available for AMO

• Truth: Stop loss, bracket, and cover orders are usually excluded

Example:
Suppose a stock closes at ?1,000. You place an AMO market order to buy. If the stock opens the next morning at ?1,030 due to overnight news, your order executes at ?1,030, not at ?1,000. If instead you placed a limit AMO at ?1,010, it would only execute if the stock traded at ?1,010 or lower.

Conclusion

After Market Orders provide flexibility to investors who cannot trade during regular hours. An AMO placed after market closure is queued by your broker and pushed into the exchange during the pre-open session. Execution depends on the type of order and prevailing market conditions at the open. By using AMOs with awareness of their benefits, risks, and timing, investors can trade more strategically without being tied to live market hours.

FAQs:

What happens if my AMO is not executed?

If the order does not match during the pre-open or regular session, it remains pending or gets cancelled based on broker policy. You can modify or cancel it before the next session.

Can I cancel or modify an AMO?

Yes, you can cancel or modify AMOs anytime before the order is sent to the exchange, usually until 9:00 AM.

Are AMOs available in derivatives and commodities?

Yes, most brokers allow AMOs in equity, derivatives, and commodity segments, though rules may vary.

Do brokers charge extra for AMO?

No additional charges are usually applied. AMOs carry the same brokerage and statutory charges as normal orders.

Is AMO first come first serve?

Yes, AMOs are processed on a first-come, first-serve basis during the market’s pre-open session, subject to price and liquidity.