Gap up/gap down how does it work ?

Hi everyone,
i am new to the markets and have a question
pardon me if this question seems dumb
i have never traded the indian market my only experience is forex demo account which i have done by technical analysis


My question is can u place an order after the market is closed.?
lets say,i think the markets are going to open positively,can i place an order lets say at 8AM ?? to take advantage of the gap up in the market ?
or can i place an order in the pre-market open from 9.00-9.07/.08 am ?

i trying to google and read its advisable to place limit orders ?
can we place oders in F&O segment or only equities or neither?


can anyone give illustrate on this matter

as you can see my knowledge is very less in this matter
any information will be hugely appreciated

With this level of knowledge, I wonder how you are handling the forex demo account by technical analysis ?!

If knowledge is less in this matter, gain it first and then you can enter later. There is no hurry unless you wish to donate money to all of us !

Placing an After Hour order does not mean that your trade will be executed. Your order will be sent to the exchange where it will join the queue with other AH orders. If you place a market order, your order will be executed at whatever price is available after the markets open. So by placing an AH order you will not be able to take advantage of gap up/down opening.

About Pre-open session, you can place orders only in the cash market that too in the scrips which make up Nifty & Sensex. Once you place a pre-open session order, it does not mean your trade will be exectued. The exchange will take all the orders & determine price at which the highest trade is possible & execute that order. This will the opening price for the normal session. All orders which were not executed in the pre-open session will be moved to normal session. So no taking advantage of gap-up/down here either.

Only way you can take advantage of gap up/down is by executing a trade before the market closes the previous day.

I assume you are talking about Indian equity markets and will answer accordingly.

Indian market does not have the concept of good till canceled. GTC in American markets lasts for months. In Indian markets, it is only the same day. The implications are that you can not enter order for the same day after market open. I do not know when they enable next day orders, I think they do it the next day.

I have definitely placed orders before market open (say 8:30 AM). You can also enter these at 9:06 etc, with some caveats. Nifty stocks (only cash, not F&O) go through pre-open during this time, so you can not cancel your orders in this window. However, you can continue to enter orders for other stocks, or for F&O during this window.

Hope that answers some but I know not all of your questions.