While ordinary trading takes place throughout these hours, after-hours trading allows you to trade after the markets have closed. Between 3.45 p.m. and 8:57 a.m. the next trading day, you can make an order for purchasing, selling, delivering, or receiving securities or commodities. AMOs are used to track these orders. As soon as the market opens the next trading day, these orders are put into the market. You might wonder why you should participate in after-hours trading. Here’s an example: You’ve got your eye on ten shares of Yes Bank that you’d want to buy for Rs. X each. However, you couldn’t find the time to buy during trading hours on a certain day when the prices were near to your expectations. Don’t be concerned. After-hours trading is still available to purchase the shares. Place an AMO if you believe the shares will open at comparable pricing the next day. After-hours trading is also great for Indian people living abroad who wish to invest in their homeland.
What are the hours for after-hours trading?
At 3.45 p.m., the BSE and NSE closed its trading operations. The next day, they reopen at 9 a.m. The time between when the market closes and when it reopens the next day is known as after-hours trading. When putting an AMO too close to the opening time, you must be cautious.
The following are the precise times: If you wish to trade stocks, the BSE offers after-hours trading from 3:45 PM to 8:59 AM. NSE is open from 3:45 p.m. to 8:57 a.m.
What is the significance of after-hours trading?
After-hours trading allows you to trade at your leisure at competitive pricing. It also aids in the proper planning of your investments. One of the advantages of investing in after-hours trading is that it allows you to study market patterns. You examine the stock’s performance, keep an eye out for government pronouncements that may affect the stock, and wait for a company’s financial results to be released. So, while after-hours trading may appear to help you catch up on market trends, it also allows you to prepare. If done correctly, after-hours trading can help you limit your losses. If you anticipate a change that will result in a price decline in the future, you may minimize your losses by selling your stocks before the downturn begins. At the same time, you should be aware of the risks associated with after-hours trading. When you sell shares after hours, you anticipate to get a certain price based on how the stock ended the previous day. This may not always be the case. Furthermore, an AMO cannot be used with a stop-loss order to limit your losses. Stop-loss orders are orders that require the seller to sell equities only if the price reaches a specific level.
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