Hello, I am wondering if this is possible, if not why, and if it would happen, what could the implications be? We are in an exponential age and I have a feeling this could happen to add liquidity to global economies
In theory it does (After Hours Trading which is more Volatile) but do you want to access it 24/7.
Trust me when you been investing for a while you prefer it does closes after 16:00 (or 21:00 for US)
What benefit would it have?
It would cost more and need overnight employees for everything.
I donāt see how it would add liquidity- it would add volatility but thatās not really a good thing.
Unless youāre trying the game the market with swing / day trading then there really isnāt much benefits so far as I can see.
Yh it really funny I was just discussing with a friend today how we probably better off just putting everything in a ETF & donāt bother with Trading or Investing in Individual Stocks.
It just a hassle when you have Individual Stocks (Trust me imagine buying EHANG when it all time high before it tank)
You wouldnāt be the only one to wonder that @ShaidK Buffett's Bet with the Hedge Funds: And the Winner Is ā¦
Interesting question, when I started investing I assumed that you could buy and sell shares whenever you wanted as itās all digital. I was surprised that a digital purchasing system still had trading hours of 9 to 5, seemed a bit old fashioned. If I want to buy something off Amazon, I can buy it at any time of the day.
I guess it comes from trading floor guys having to have a reasonable working day. Personally, it would be better for me if markets operated 24/7 as I could research a stock and then buy it knowing exactly what price I would get if itās 9pm in the evening or something.
Crypto is obviously newer, but trades 24/7/365 - always on. FX also trades 24 hours a day, presumably because itās needed in order for businesses to trade.
I would guess that at some point the stock market(s) will go 24/7. It will suck for people who are on the trading floor or who professionally trade 9 to 5, but I think there will be some benefits to markets being open all the time. New information can be acted on instantly, instead of having to wait 12 hours or a full weekend, which in theory will make transfer of money and allocation of resources more efficient.
What benefits are you thinking about when you say āthere will be some benefitsā?
The Amazon example actually is the opposite of what you intended. You can order 24/7, but it only gets fulfilled once Amazon opens for business in your country, not when they receive the order. So exactly like the stock market currently.
Itās in the next sentence, my dude!
Fair enough, I thought thereād be more to come.
Yeah I really want it to be open 24 hours, and find while Iāve been asleep the markets have crashed and Iāve lost me money
THANK YOU! It bugs the fudging cow pats out of me that itās not open 24/7. If supermarkets can be open 24/7 and essential workers can be expected to work night shifts then I donāt appreciate that stock markets (and banking) still operate on a Mon-Fri + old working hours model.
I see the points about volatility whilst you sleep but that happens now if youāre investing in overseas stock markets plus we have tools like the Stop Limit thingies.
However when I seize power, I am willing to compromiseā¦ the UK stock markets will move to a 9am-9pm, 7 days per week model. I wonāt be a monster when Iām in charge, unless you insist on eating roast beef on Sundays.
Milk break for 15 minutes at 11am though?
[quote=āCashCow, post:12, topic:53344, full:trueā]I wonāt be a monster when Iām in charge, unless you insist on eating roast beef on Sundays.
[/quote]
Sure, if youāre going to eat Monster Munch on a Sunday, itās Pickled Onion or bust.
It would lower liquidity, not add it! Say you have volume of 1M over 10 hours, extremely crude (most trading happens at open & close) average of 100k/h. Go to 24h, and thatās slightly less crudely (no open and closeā¦ probably most would now happen ~start & ~end of ātypicalā work day, in the major regions trading in that market?) less than 50k/h.
You might offer more liquidity to a retail trader wanting to place an order for TSLA at 3am after discussing it on a night out (who currently canāt fill that instantly, and either leaves a limit/fill-kill order or places it whenever they wake up the next day, probably after opening) - but not to the professionals working whatever hours, who have the most volume to shift anyway.
Anyway, ātheoreticallyā yes, and it is something that gets discussed and tried - but not for liquidity. Another thing discussed and desired by some is much shorter opening; itās that that would have the liquidity advantage, condensing all the trading in a day into just half an hour or whatever.
That would create many new jobs
These people are the backbone of our financial markets, we need to support them. This could be 10ās or even 100ās of Ā£ās of lost transactions that are instead being spent on dodgy takeaways
IIRC Nasdaq tried to set up a 24/7 market in the early 2000s but it never took off.
Itās an interesting concept to want to trade 24/7, and have expedition like Amazon. And letās face it some markets like currencies and crypto currency are there. I donāt trade in these markets so I canāt speculate on there expedition.
But bearing in mind most markets have pre market and post market hours, that most brokers donāt allow trading in, a 24/7 market I believe is far far away.
Plus personally Iād be frazzled if they were 24/7. I like the non operating hours for me to absorb whatās happened in that market/sector overall economic impact and do my homework on potential investments. But hey I maybe old school in this respect.