MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

"What would happen if stock trading was available around the clock"

JD_co
in Other Investing

https://www.axios.com/2024/04/23/nyse-24-hour-stock-market-trading

Where it stands:
Blue Ocean and Robinhood offer 24-hour trading to small investors, five days a week, but those are private share sales that don't take place at officially recorded prices.

If the NYSE were to get involved, prices would become public and available to all market participants. High-frequency traders and hedge funds would be more likely to pay attention and try to make money from nocturnal market anomalies.

A proposed new exchange, 24X, has already applied to the SEC for permission to operate on a 24-hour basis.

Comments

  • hank
    Shares of DraftKings (DKNG) would probably take a hit.
  • gman57
    edited April 23
    More and faster volatility. I've read crypto trades 24x7 and when Iran sent missile towards Israel over the weekend crypto moved quite a bit. The normal market was closed and when everyone saw no major damage by Monday the general market barely noticed it.
  • Observant1
    edited April 24
    What would happen if stock trading was available around the clock

    Some "investors" would get very little sleep! ;-)
  • Devo
    The prices of all options would increase to reflect 24/7 trading instead of 9/5
  • Devo
    Intra day Correlations would decline across assets which don’t trade 24/7
  • rforno
    edited April 24
    Equity markets and their traders* need time to breathe, to pause, and assess - especially around news/earnings events. Turning the equity markets into 24x7 cryptocurrency will be significantly destabilizing, even if some think it's 'cool' and a 'great thing' to be able to 'bet' (key word) on stocks around the clock.

    * I am not including algorithms here, since they, rightly or wrongly, tend to only make good things great and bad things worse in a gigantic thundering herd motion

  • Devo
    The motivating factor may not be necessarily demand side. The supply side infrastructure has been built and those that built the exchanges and the pipes might want to offer the service to monetize their cap ex. Any revenue is better than zero
  • rforno
    Devo said:

    The motivating factor may not be necessarily demand side. The supply side infrastructure has been built and those that built the exchanges and the pipes might want to offer the service to monetize their cap ex. Any revenue is better than zero

    Agreed. The brokers/exchanges want more volume, more order flow, more churn, more commission/fees, and so forth. Sure it might be profitable for them but what that might do to the markets isn't a concern for them or their shareholders.
  • racqueteer
    Observant1 said:

    What would happen if stock trading was available around the clock

    Some "investors" would get very little sleep! ;-)

    First thing that came to my mind as well!
  • rforno
    racqueteer said:

    Observant1 said:

    What would happen if stock trading was available around the clock

    Some "investors" would get very little sleep! ;-)

    First thing that came to my mind as well!
    Go to sleep.

    Wake up during the night.

    Go to bathroom.

    Short something.

    Back to bed.

    Worry about said short position.

    Wake up.

    Check markets.

    Back to bed.

    Repeat until daybreak.

    ... sounds like a stress-reducing long-term plan to me!! :)

  • hank
    edited April 24
    That’s too damn funny @rforno.:) Although a bit unclear which ”short position” you’re checking.

    “Sleepwalking” could be another issue for some …
Sign In or Register to comment.