Buy in post market and sell in pre market


#1

Is it possible to buy in post market and sell in pre market .

Example : If the closing of Reliance @ 3.30PM is 100 per share. I place a post market order.
In the morning i saw @ 9.00AM in pre market session, Reliance price dropped to 95 per share. Will it be possible for me to sell/cancel the share in pre market session ???
Because the orders are yet to be executed as market are not open(9.15AM).
PLease explain.

Thankyou.


#2

Hey @TUSHAR_DHOTE

Technically that is possible, however, it isn’t recommended. The impact costs (slippage) will be too high and there’s also a risk of short delivery.


#3

Why will it be risky?? if the order itself is not yet executed, as i am buying and cancelling it before the market opens ??
Can you explain the slippage part ??


#4

The short delivery risk has nothing to do with pre/post market transactions. Its applicable in all BTST trades.

Yes, if the order itself is not executed, then there won’t be any risk or Cost.

In Post markets, only Market orders are allowed and there’s not many participants in the post market session. So your market order can get executed at a price far away from what you intended.