All About After Hours Trading

Investors in India can trade assets and securities after the stock market closes. After-hours trading is the name for this type of trading.

The Securities and Exchanges Board of India, (SEBI), allows traders to trade outside of normal trading hours using an investment tool called the after trading hours. This investment tool is particularly useful for those who don't have the time or interest to follow the market during trading hours.

After-hours trading is when orders are placed for equity derivatives or commodities. These orders are known as after-market orders (AMOs).

What's after-hours trading?

India has two main stock exchanges: the BSE (formerly Bombay Stock Exchange), and the National Stock Exchange of India. These markets are open from 9 AM to 3 PM.

Even though regular trading takes place during these hours you can still trade after-hours trading. Orders for selling, buying, delivering, or receiving commodities or securities can be placed anytime between 3:45 PM and 8 :57 AM on the next trading day. These orders are known as AMOs. These orders are immediately pushed to the market when they open on the next trading days.

You may wonder why you should participate in after-hours trades. Let's say you have ten shares of Yes Bank in your sights that you want to buy at Rs. You would pay X per share. However, you might not be able to buy during trading hours on a specific day when the prices are close enough to what you expect. Don't worry. After-hours trading is an option to purchase shares. Place an AMO if you believe that shares will open at the same rates the next day.

For overseas Indian citizens who wish to invest back home, after-hours trading can also be a great option. If you are a resident of the United States of America, it doesn't mean you have to wait until the Indian markets open in India. You can place an AMO and be good to go.

What is after-hours trading timing?

At 3.45 PM, the NSE and BSE closed down. They reopen at 9 AM on the next day. After-hours trading occurs between the time the market closes and when it re-opens the following day. Avoid placing AMOs too close to the opening time.

These are the exact times for equity trading: After-hours trading is possible from 3:45 PM to 8:59 AM for BSE. NSE trades open between 3:45 and 8:57 AM.

You must trade between 3:45 and 8:59 AM to place an AMO currency trading. After-hours trading is available for derivatives like futures and options, also known as F&O. It takes place between 3:45 and 9:10 AM.

Why are after-hours trades important?

After-hours trading allows you to trade at attractive prices at your pace. This helps you plan your investments.

After-hours trading offers you the opportunity to analyze market trends and is one of the main reasons you should invest. After you have seen how the stock behaved, keep an eye out for any government announcements or financial statements that may affect the stock. Although it might seem that after-hours trading allows you to catch up on market trends and allow you to plan, it can also be a great way for you planning.

If used properly, after-hours trading can help to minimize losses. You can reduce your losses if you anticipate a price drop in the future by selling your stocks before it happens.

However, it is important to be aware of the potential negative consequences of trading after hours. After-hours trading is when you can expect a certain price for your stock based on the stock's closing day.It might not always be so.

To minimize your losses, an AMO cannot be placed with a stop loss order. Stop-loss orders allow you to sell stocks only when the price reaches a certain level.

Where can I place an order for trading after hours?

Trading after-hours is just as easy as regular trading. 

Log in to your Demat account if you are an existing customer. You can place an order to buy or sell an equity derivative or commodity just like you would regular orders. Click on the AMO option. We will accept your order and push it to the stock market within 24 hours.

Conclusion

Trading after-hours can be risky, but it is still a risky business. After-hours trading can be a great way to make money if you do it well. It can be used to analyze market trends and make informed decisions.