Some of the benefits of using an AMO are listed below.
AMOs provide the opportunity to trade or invest to individuals who cannot do so during regular market hours due to other commitments.
You can always cancel or modify your AMOs, which protects you from any negative news or incidents that may impact the market.
You can place an AMO on weekends as well.
AMOs can be placed for different types of trading options like equity delivery, known as Cash and Carry (CNC), Margin Intraday Square Off (MIS), and Normal Order (NRML).
After-market trading allows investors to profit from news and events outside of typical trading hours, but it also has drawbacks:
Reduced liquidity: After-market stock trading may have fewer buyers and sellers. This can make trades tough.
Greater volatility: With fewer market players, after-market prices may fluctuate more, increasing losses.
After-market bid-ask spreads may be wider than during regular trading hours. This raises trading costs.
After-market trading may not be available to investors at all brokerage firms.
After-market trading fees may limit returns.
Check out our blog on after market order in detail