In India, investors can trade in assets and securities even after the stock markets close. This type of trade is called after-hours trade .
The Securities and Exchanges Board of India ( SEBI ) authorises traders to indulge in trading outside of regular trade hours through an investment tool known as the after trading hours. This cock is particularly utilitarian for people who do not have the time to watch the market during the trade hours, for whatever reasons .
Placing any orders for buying or selling fairness derivatives and commodities after the stock markets have closed for the day amounts to after-hours trade. such orders are called after-market orders ( AMOs ) .
What is after-hours trading?
In India, there are two primary coil broth markets—BSE ( once Bombay Stock Exchange ) and National Stock Exchange of India ( NSE ). Both these markets operate from 9 AM to 3:45 PM .
While regular deal happens during these hours, you can besides trade after the markets shut through after-hours trade. You can place an order for buying, sell, delivering or receiving securities or commodities any prison term between 3.45 PM and 8:57 AM the next trading day. These orders are registered as AMOs. These orders are pushed into the market vitamin a soon as they open on the following trading day .
But why should you take separate in after-hours deal, you may ask. here ’ s an exemplify : You ’ ve had your eye ten-spot shares of Yes Bank that you wanted to purchase at Rs. X per share. however, on a particular day, when the prices are close to your expectations, you couldn ’ deoxythymidine monophosphate find the time to purchase during the trading hours. Don ’ t worry. You can inactive buy the shares through after-hours trade. If you think that the shares are likely to open at similar rates the following sidereal day, put an AMO .
after-hours trade is besides ideal for oversea indian nationals who want to make investments back family. For exercise, if you live in the United States of America, you needn ’ thymine stay up late into your night and delay for the markets to open in India. Place an AMO, and you ’ ra well to go .
What are after-hours trading timings?
The BSE and NSE shut shop at 3.45 PM. They re-open at 9 AM the following day. after-hours trading takes target in the time period between when the market shuts depressed and then re-opens the adjacent day. You have to careful while placing an AMO besides close to opening fourth dimension.
here are the demand timings : If you want to trade in equity, the after-hours trade takes stead from 3:45 PM to 8:59 AM for BSE. The same for NSE is from 3:45 PM to 8:57 AM .
To place an AMO for currency trade, you have to trade between 3:45 PM and 8:59 AM. For trading derivatives such as future and options ( besides known as F & O ), the after-hours trade takes position between 3:45 PM and 9:10 AM .
Why is after-hours trading important?
after-hours deal gives you the choice of trading at attractive prices at your own pace. It helps you plan your investments well, excessively .
One of the reasons for you to invest in after-hours deal is that it gives you the meter to analyse market trends. You see how the store has behaved, look out for government announcements that can impact the stock or release of fiscal statements by a company. so, while it may seem like after-hours trade helps you catch up on marketplace trends, it besides enables you to plan .
after-hours trade may help you minimise losses if used wisely. If you foresee a change that could lead to a neglect in prices in future, you can cut your losses by selling your stocks ahead of the decline .
At the like time, you should be careful of the negative repercussions of after-hours trade. When you sell stock during after-hours trading, you expect a specific price for it based on how the sprout closed the former day. This may not be true every time .
besides, if you place an AMO, you can not place it with a stop-loss orderliness to minimise your losses. Stop-loss orders are orders that come riders for selling stocks merely if the prices reach a certain numeral .
How do I place an order for after-hours trading?
after-hours trade is deoxyadenosine monophosphate bare as regular trade. Register with Angel One for your Demat account by clicking here.
If you are our existing customer, logarithm on to your Demat account after regular market hours. place and order for buying or selling an fairness derivative instrument or commodity, just as you would for regular order. Click on the choice for AMO. We will take your order and push it to the banal market american samoa soon as the grocery store opens the adjacent day .
after-hours deal may come with risks, but trade is bad clientele anyhow. If done well and wisely, you can reap the benefits of after-hours deal at your own footstep. Use it as a instrument to analyse market trends, take a careful decision .