Post-market Order

A post-market order (also called an after-market order or AMO – After Market Order) is an order placed after the regular trading session closes. In India, the regular equity market closes at 3:30 PM; post-market orders placed after this are queued and sent to the exchange when the next trading session opens.

What Is a Post-Market Order?

When the regular trading session ends at 3:30 PM, investors can still place orders through most brokers. These after-market orders (AMOs) are queued and submitted to the exchange at the start of the pre-open session (9:00 AM) the next trading day.

AMOs allow investors who cannot actively trade during market hours to place orders for the next day.

After-Market Order Timing

Different brokers have different AMO windows:
– Typically allowed after 3:30 PM (after close) until the next day’s pre-open session starts
– Some brokers allow AMOs from 4:00 PM to 8:45 AM the next day
– AMOs are sent to the exchange at the start of the pre-open session the following morning

Types of AMO Orders

– **Limit orders**: specify the price; order executes only at that price or better when the market opens
– **Market orders**: execute at the opening market price; higher risk due to overnight gap risk
– **Stop-loss orders**: placed with trigger and limit prices for next day’s session

Who Uses Post-Market Orders?

– Working professionals who cannot monitor markets during the day
– Long-term investors making planned purchases or exits outside market hours
– Traders who want to position for the next day based on after-hours analysis

Practical Example

Priya works a 9 AM to 5 PM job. After reviewing the market at 8 PM, she decides to buy shares in a pharma company at Rs 450 (current price is Rs 465). She places an AMO limit buy at Rs 450. The order is queued by her broker and sent to the exchange at 9:00 AM the next day. If the stock opens below Rs 450, her order executes.

Key Takeaways

– After-market orders are placed after market close and queued for the next session’s open
– Useful for investors who cannot participate during regular market hours
– Limit orders are safer for AMOs; market AMOs carry gap risk (stock may open far from the previous close)
– Execution is not guaranteed; the stock must reach your limit price when the market opens
– Brokers typically have specific AMO windows and cut-off times; check with your broker