What is the Full Form of AMO in The Share Market?

The AMO Full Form in Share Market is After Market Order. In simple words, an AMO is nothing but an order to sell or buy stocks once the regular trading times are over.

This becomes all the more helpful to the people who cannot sit and keep a watch on the market or make trades at that time since mostly they remain busy with stuff. In essence, the AMOs take effect at the start of the next day’s trading.

How Does AMO Work?

Here’s the catch though: you put an AMO after the market closes. The order will wait overnight and get into action as soon as the market opens the following day. And suppose you decide to place an AMO order in the evening. Your broker simply waits until the next day’s market starts up. This means that you have room to think over your day’s trading decisions at night and not necessarily do day-to-day real-time trading.

Benefits and Risks of AMOs

And AMOs come in handy, since with them, you can be able to place your trades even when you are not free during regular market hours. They allow you to join the game of the stock market at any time without paying attention to the clock. They are available for different types of markets, such as stocks, futures, and options (F&O), currency, and commodities. Of course, there’s a catch: trading after hours might mean that there’s never full activity, hence large orders can’t get filled. And prices you will find after hours are sometimes different from those within regular hours, thus the course that your AMO will take is changed.