The AMO Full Form in Share Market is After Market Order. In simplest terms AMO is simply an order to buy or sell stocks after the normal trading hours have ended.
This is especially beneficial to those who are unable to remain glued to a monitor at the market or make trades during this time because the majority of them are distracted by other things. The AMOs are in effect at the beginning of the following day’s trading.
How Does AMO Work?
The catch is that the AMO is placed after closing of the market. The order is held for a night and then be in action when the market opens on the next day. In the event that you decide to make an AMO order at night. The broker will wait until the next trading day begins. This gives you the time to consider the trading decisions of your day at night, but you do not have to be able to trade day-to-day in real time.
Benefits and Risks of AMOs
AMOs are a great option as you’ll be able make trades even if you’re not available during normal market hours. They let you participate in the fun of the market anytime without having to pay attention to the timer. They’re accessible for a variety of kinds of markets, like options, stocks, options (F&O) and currency, and commodities. However, there’s one caveat: trading outside of hours can mean that there’s no activity at all and therefore large orders won’t be fulfilled. Prices you can see after hours can be different from those that are found during normal business hours, and the route your AMO follows can be changed.
