All About Overnight Trading

You can invest in securities or assets after markets close by the Securities and Exchanges Board of India. These investments are made outside regular trading hours. They are known as after-market orders (AMOs), and come with the residual maturity for a day.

As the name implies, overnight trading is a form of trading where you can buy assets or securities after the markets close. This happens through the night before the markets reopen.

Overnight trading is an option for those who are unable to monitor the stock exchanges during market hours. You can trade stocks and commodities even after the market hours, which is why overnight trading is so convenient for people who live outside India but still want to trade home.

What's overnight trading?

After the market closes, you can buy or sell equity derivatives and commodities. This is known as overnight trading or after market order.

Why trade overnight when you can trade during market hours? Let's say you have 10 ABC shares with you. You see a positive trend in prices over the course of the day. You know your stock will open at a high price the next morning, so you might want to sell it as soon as possible. However, you may have a meeting at 9 AM. To sell your 10 stocks immediately after the markets reopen, you can place an MO.

This is just one example of how overnight trading can work for you. You might expect a major market shift after a major global event that happened overnight. To avoid any last-minute headaches, you can place an AMO for the morning.

What is the overnight trading time?

India has two major stock exchanges, the BSE or National Stock Exchange of India.

BSE is equity trading . The overnight trading hours for are 3:45 p.m. - 8:59 a.m. NSE's overnight trading hours are 3:45 p.m. - 8:57 am.

You can trade currency between 3:45 and 8:59 a.m. for AMOs. Trading derivatives like future or options (commonly called F&O) is possible overnight between 3:45 and 9:10 am.

Place an overnight trade order

Placing an AMO is just like any other order.

Place your order to buy, sell, deliver, or receive commodities or securities. Click on the AMO option. As soon as the market opens, we will take your order.

What is the benefit of overnight trading?

Overnight trading offers a number of key benefits, including the ability to trade at your own pace and without regard for market timings. Even if you're a working professional and don't have the time to monitor market trends throughout the day, overnight trades allow you to trade when you want. Other benefits include:

1. You can analyse the market behavior throughout the day with overnight trading and make informed decisions.

2. Even though overnight trading can make you a profit on stocks the next day, it can also help you reduce losses in losing stocks.

3. If you do not wish to proceed with an order, you can cancel or modify your overnight order.

These are important for overnight trading

Even though overnight trading can be convenient, there are some risks. You might expect a rising stock to open up the next day, increasing your profits. However, it may turn your profit into a loss.

A limit or market order can only be placed during overnight trading. It is an order that limits the stock's price. This price includes both the price that you must pay to purchase a share and the price at which your stock can be sold. Your order will be cancelled if the share price falls below the one you ordered.

AMO permits you to cancel or modify an order but cannot limit your losses. Overnight trading is not permitted by stop-loss orders. These orders help to limit your loss. You cannot order an AMO with stop-loss orders. The order can only be placed if stock prices fall below a certain level.

Another thing to remember is that if a company releases its financial statements or other economic data, the price gap will rise during non-market hours because there is very little liquidity. This could adversely impact your AMO.


You can trade overnight, which is a great investment tool. This is convenient for people who don't have the time to monitor the market throughout the day.

The process comes with risks. If you want to take advantage of overnight trading's leverage, you should consider the risks. Make sure you use the tool responsibly.

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