Friday, February 08, 2013

Why Are Stocks Not Traded 24 Hours Every Day?


There Is No Excuse

There is to my knowledge no compelling reason why it could not be done. Forex is traded 24 hours for about six days of the week.

Ordinary Active Traders

Round the clock trading would also allow ordinary people to become more active traders in cash stocks, because they could trade before going to or after coming back from work or on weekends.

Pricing Without Gaps

Round the clock trading would eliminate many oddities of equities trading like the daily opening gap or pre/post market trading or the Monday morning surprise or the after trading material announcements and so on. Thus pricing of stocks would be much smoother and less erratic.

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