Are you curious to know what is AMO in zerodha? You have come to the right place as I am going to tell you everything about AMO in zerodha in a very simple explanation. Without further discussion let’s begin to know what is AMO in zerodha?
Zerodha, one of India’s leading discount brokerages, offers a range of features and tools to facilitate seamless trading experiences for its users. One such feature is AMO, which stands for After Market Order. In this blog, we will explore what AMO is, how it works in Zerodha, its benefits, and how you can use it to make trades beyond regular market hours.
What Is AMO In Zerodha?
AMO, or After Market Order, is a facility provided by Zerodha that enables users to place orders for buying or selling stocks outside the regular market hours. While the stock exchanges operate during specific trading hours, AMO allows traders to participate in the market before it opens or after it closes.
How Does AMO Work?
AMO orders are placed by traders using Zerodha’s online trading platform, such as Kite or Zerodha’s mobile app. The process of placing an AMO order is similar to placing a regular market order during trading hours. However, AMO orders are stored in the system and are executed when the market opens on the next trading day.
Benefits Of AMO
- Convenience: AMO allows traders to place orders at their convenience, beyond the regular market hours. This flexibility is particularly useful for individuals who are unable to actively trade during market hours due to work or other commitments.
- Market Reactivity: By placing AMO orders, traders can react to news or events that occur outside market hours. This enables them to respond to market developments promptly and take advantage of potential price movements.
- Order Accuracy: AMO orders give traders the opportunity to carefully analyze their trading decisions and place accurate orders, as they are not rushed by real-time market fluctuations.
- Avoidance of Price Gap Risk: Sometimes, significant price gaps can occur between the closing price of a stock and its opening price on the next trading day. By placing AMO orders, traders can potentially avoid the risk of unfavorable price gaps and ensure their orders are executed close to their desired price.
Using AMO In Zerodha
To use AMO in Zerodha, follow these steps:
- Log in to your Zerodha trading account through Kite or the mobile app.
- Navigate to the order placement section.
- Choose the stock you wish to trade and select the AMO order type.
- Specify the quantity, price, and other relevant details for the order.
- Review and confirm the order details.
- Submit the AMO order.
It’s important to note that AMO orders are subject to the availability of stocks and liquidity at the time of market opening.
AMO (After Market Order) in Zerodha is a valuable feature that enables traders to place orders beyond regular market hours, providing convenience and flexibility. Whether you want to react to market developments, trade during non-trading hours, or avoid potential price gaps, AMO empowers you to engage in the stock market at your convenience. By leveraging this feature in Zerodha’s intuitive trading platforms, you can enhance your trading experience and seize opportunities in the ever-changing financial markets.
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Does Zerodha Charge For AMO?
Zerodha is the discount broker having flat brokerage charges for all trade segments. Other than this, there are no additional fees for AMO orders. 0.03% or ₹20 per executed order, whichever is lower.
Which Is Better AMO Or Gtt?
GTT is a feature which allows you to set a trigger price, such that; if your trigger price is hit in a future date, a limit order will be placed on the exchange as per the limit price and preset conditions set by you. AMO is an advance order that allows traders to place buy/sell orders after regular market hours.
At What Price Is AMO Executed?
This order is at market price. The AMO order you placed goes to your broker and stays as such until 8:58 AM of the next trading day. At 9:00 AM the next day, the broker sends the AMO order to the stock exchange. Once the stock exchange starts operations at 9:15 AM, your order gets placed at the opening market rate.
What Are The Benefits Of AMO Orders?
AMO is for those customers who are busy during market hours but wish to participate. In post market hours trading, one need not actively track the price movements of a stock during market hours. You can plan your orders at leisure after doing research before the market opens the next trading day.
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