Could you survive a 13 hour trading day?
- Thread starter mahram
- Start date
I do a lot with the influence of US action on ex-US markets that are closed or are open for only a portion of the US trading day.
So to me the proposal probably will not be a helpful development. An example would be when the dax hours were extended recently.
So to me the proposal probably will not be a helpful development. An example would be when the dax hours were extended recently.
Since most news affecting US markets occurs either the night before (in Asia) or starting at 3AM (when Europe opens), I see nothing wrong, other than lack of sleep for people on the left coast, for starting US trading at 7:30 or 8AM. Move earnings releases and economic reports appropriately. And since 6.5 hours is more than enough to trade, they should close at 2 or 2:30PM. That way we get to see *some* daylight.
But what about the liquidity. Europe doesnt have that many retail or institutional buyers as northamerica. And many of them arent aware of some wellknown american stocks. Wouldnt the volatility during those late hours, be incredibly huge, just because of the lack of liquidity. Can you imagine a specialist working 13 hour days, and seeing the stock collaspe b/c he went home.
hey how about a merger between hongkong,british and american exchanges. Forming a 24 hour exchange. LOL it would be a hilarious market with some of those new cow boy traders from mainland china. Look at what some of those traders did to the copper markets and other metals.
QUOTE]Quote from Exchanges:
13-hours??
That's nothin'!
I've traded the forex for 18,000-hours straight (it's open 24-hours a day) apart from sleep that was about 80% less than what is normal.
x [/QUOTE]
QUOTE]Quote from Exchanges:
13-hours??
That's nothin'!
I've traded the forex for 18,000-hours straight (it's open 24-hours a day) apart from sleep that was about 80% less than what is normal.
x [/QUOTE]
money stops for no man.
Runningbear
Runningbear
I think it is the most natural, the most normal thing that can happen to the markets. In fact there are no economical reasons why markets are not entirely electronic and 24 h already. The reasons are probably the traditionalism and inertia of a lot of people who were born, raised and have traded in the old world.
What is in fact the role of an exchange? It's only purpose is to provide a means for market participants to trade. Does this imply there should be some geographical, or time restrictions? Of course not. The mechanism, the exchange, brokerage, ECN, or whatever you may call it must exist everywhere and all the time. Now should the market makers have a preference for a certain period of time, or for some particular assets (Americans for US Stocks for example between 1400 - 2100 GMT) it's only their subjective choice. Nobody forces one to trade 24h. If you're profitable you may trade as less as 1 min a day. There will be periods of less liquidity and periods of greater liquidity. The market will calibrate itself, no need to impose artificial restrictions. FOREX is a very good example. The effect of less liquidity will be greater costs of transactions during some parts of the day. So in the end, the normal schedules of people will be in most part kept unchanged. That is no need to worry for your spare time. The 24h market won't eat it up
What is in fact the role of an exchange? It's only purpose is to provide a means for market participants to trade. Does this imply there should be some geographical, or time restrictions? Of course not. The mechanism, the exchange, brokerage, ECN, or whatever you may call it must exist everywhere and all the time. Now should the market makers have a preference for a certain period of time, or for some particular assets (Americans for US Stocks for example between 1400 - 2100 GMT) it's only their subjective choice. Nobody forces one to trade 24h. If you're profitable you may trade as less as 1 min a day. There will be periods of less liquidity and periods of greater liquidity. The market will calibrate itself, no need to impose artificial restrictions. FOREX is a very good example. The effect of less liquidity will be greater costs of transactions during some parts of the day. So in the end, the normal schedules of people will be in most part kept unchanged. That is no need to worry for your spare time. The 24h market won't eat it up
Seriously though, I will adapt as I am sure everyone else will.I doubt they will have like seperate time zone commission schedule. If you put that up with the staff required to handle 24 hour type deal, commissions on an average basis will go up.
Quote from btud:
I think it is the most natural, the most normal thing that can happen to the markets. In fact there are no economical reasons why markets are not entirely electronic and 24 h already. The reasons are probably the traditionalism and inertia of a lot of people who were born, raised and have traded in the old world.
What is in fact the role of an exchange? It's only purpose is to provide a means for market participants to trade. Does this imply there should be some geographical, or time restrictions? Of course not. The mechanism, the exchange, brokerage, ECN, or whatever you may call it must exist everywhere and all the time. Now should the market makers have a preference for a certain period of time, or for some particular assets (Americans for US Stocks for example between 1400 - 2100 GMT) it's only their subjective choice. Nobody forces one to trade 24h. If you're profitable you may trade as less as 1 min a day. There will be periods of less liquidity and periods of greater liquidity. The market will calibrate itself, no need to impose artificial restrictions. FOREX is a very good example. The effect of less liquidity will be greater costs of transactions during some parts of the day. So in the end, the normal schedules of people will be in most part kept unchanged. That is no need to worry for your spare time. The 24h market won't eat it up