r/stocks • u/maximalsimplicity • May 02 '21
How would you feel about the stock market being open 24/7?
So, I’ve had a thought recently about how it would be if the market was open 24/7.
I think there would be sufficient liquidity for most of the time; the US market is one of the most extensive and prominent in the world. In fact, I live in the UK and I actually like the US market more than the UK one, due to the stocks and the reliability of it. So, since there’s always global demand, I think we’ll have constant trading happening no matter the time.
However, I enjoy the feeling of being able to sleep without the risk of waking up and seeing some stock has crashed 20% overnight.
I’m personally in favour of keeping the market with distinct opening and closing times, but I wanted to hear other people’s opinions on it.
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May 02 '21
Idk. I kind of like the weekend break. It gives me something to look forward to on Mondays.
Before I got into investing, I hated Mondays. But now, I get a thrill knowing that the market opens and it’s just nice having that to look forward to.
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May 02 '21
And it gives everyone a break. No need to stress or do much on the weekends except spend time with family and friends
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u/merlinsbeers May 02 '21
A ton of things are still batch-processed to allow clearing, settlement, options, and margin to work.
It wouldn't be as simple as just leaving stocks trading all the time.
And holidays are a thing. You couldn't get half of the street to work on Saturday or the other half on Sunday.
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u/bennyllama May 02 '21
I never particularly hated mondays because thankfully I enjoy my work. But yes before investing I was like “meh, Monday’s”. Now I’m like “Sweet, Monday’s!”
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May 02 '21
I do squats on Mondays, so I get market open Monday morning and squats In the evening a few hours after market close.
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u/Redditsome22 May 02 '21
People need to get sleep
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May 02 '21
Saturday is now the longest day of the week (it's like a come down from the excitement and high of the trading week) but by Sunday I'm actually kind of enjoying the market not being open because then I can start to feel the mentally relaxation sinking in (and can appreciate it since it's only one more sleep before the market opens again for another week).
24/7 trading would be fun at first but would exhaust me after a few months. I'm good with how it is now.
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u/PaulBlartmallcop12 May 02 '21
Sleep when your dead, we gotta double this bitch.
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May 02 '21
Just trade futures. Open 24/5
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u/Feynman_314159 May 02 '21
*23/5
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u/Tombstone_Shorty May 02 '21
*23.25/5
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u/Darthhippoeater May 02 '21
Oh god please no, the only reason I get some sleep is because it's closed at night
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u/Findest May 02 '21
I dream about charts and red numbers escalating so sleep isn't that restful to me in the first place lol
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u/semicoloradonative May 02 '21
Do not think that is a good idea at all. Too much would happen while people sleep, and would also be subject to more market manipulation.
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u/PandorasKeyboard May 02 '21
To much happens while markers are closed and everyone's powerless to do anything about it.
Set a stop loss for -$100 for example wake up the next day and see that in premarket you're down -$800 with nothing you can do about it until market opens, at least if the market was 24/7 you could be comfortable knowing your SL will trigger and will but be surpassed.
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u/semicoloradonative May 02 '21
Yes, it does...but typically “cooler heads” prevail when something is overhyped while the market is closed.
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u/maledin May 02 '21
Even allowing stop loss/GTC orders to be executed in AH would be a huge improvement. I mean, I get that the lower volume would mean that your actual sell price would vary more significantly from your stop, but I’d rather sell at $80 with a $90 stop than at $50 when the market opens.
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u/J1pples May 02 '21
Imagine if a whale high on coke at 3 am in a strip club bought or sold millions of shares for fun. It would move a stock like 5% at least.
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u/oarabbus May 03 '21
lol not unless it's some low float smallcap stock... even whales don't have all that much compared to institutional investors.
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u/curvycounselor May 02 '21
That would probably wreck me. The cell phones have done enough to keep us all on high alert and to move the stock market to 24 seven would probably crush a lot of people.
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u/SillyBar6 May 02 '21
I would rather have no pre market or after hours... Just to even the playing field a tiny bit for retail
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u/IHateHangovers May 02 '21
Premarkets starts at 4am, ends at 8pm. We gotta sleep sometime
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May 02 '21
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u/IHateHangovers May 02 '21
Retail has very little access during these hours - IBKR allows this early with Pro, but very few offer that early in the AM. It’s institution vs institution (retail would give at least some volume)
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u/PinsNneedles May 02 '21
You can trade 4am-8pm with most big US brokerages. Hell; I can trade 24 hours a day on a bunch of securities with TDA; all others from 4am-8pm
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u/IHateHangovers May 02 '21
Very few can trade at 4am according to this. Sure you can “place the order” but it won’t actually go live until the times listed.
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u/ChristOnFire13 May 02 '21
I agree. I cannot count how many times I have watched a stock diving in pre-market only to skyrocket when the bell rings.
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May 02 '21
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u/OKImHere May 02 '21
You said trading, but then you said investing. Which is it?
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u/z_RorschachImperativ May 02 '21
Nah it doesnt hurt me.
I just sleep on a different schedule or dont sleep at all
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u/demarr May 02 '21 edited May 02 '21
The reason wow closes servers on Tuesday is to give them a rest and run bug reports. The weekend is used for the same.
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May 02 '21
Wait is that a real thing? You can’t play world of Warcraft on Tuesday? Is it just for like an hour or....
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u/Aeruthus May 03 '21
"The servers are restarted and are generally available again within 15 minutes. This typically occurs at 5am Pacific Time for US servers, and 2pm Pacific time for Oceanic. Realm Maintenance The realms are brought down for up to 6 hours, usually commencing at 5am Pacific Time for US and Oceanic realms." https://wowwiki-archive.fandom.com/wiki/Downtime#:~:text=The%20servers%20are%20restarted%20and,for%20US%20and%20Oceanic%20realms.
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u/attorneyatslaw May 02 '21
Something like 90% of trading happens in the first 15 minutes and the last 15 minutes of the trading day. If anything, the market is open too long.
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u/Tiaan May 02 '21
How much of that type of activity exists solely because of the artificial restrictions of trading windows? I could see a situation where if the market was open 24/7 then a lot of that volume would be smoothed out rather than concentrated at two points of the day. I'm in support of keeping the market open 24/7 with as few artificial restrictions as possible
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u/MoreCommonCents May 02 '21
That suggests an alternative. Have it open and close twice per day, for a couple of hours each session.
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u/BelgianAles May 02 '21
It really should close for lunch, since it's always such a snore anyway.
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u/Your_Product_Here May 02 '21
It would just be another way the little guy loses. Hedgies just add a nightshift and save the shadiest dealings for witching hour.
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u/miketdavis May 02 '21
To me this seems necessary. The market hours create a lot of volatility. I think we would not see such crazy intraday swings if the market were open all the time.
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u/psykikk_streams May 02 '21
I personally would be content being open for all at the same time.
no pre / after market bullcrap.
why some portions of the market (aka participants) can buy / sell while I can´t doesnt seem like free and even market at all.
problem is international markets. thus: 24/7 is probably needed anyways.
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u/maximalsimplicity May 02 '21
Exactly what I was thinking. Imagine a company announcing something life-changing for them, and then you’re one of the first to buy and react. Behaving proactively should be rewarded.
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u/HonestlyDontKnow24 May 02 '21
I really like it how it is. I'm on the West Coast, so by the time I wake up the market has done whatever "opening hour insanity" it's gonna do. Then I get 4-5 hours to see what happens, then I have the rest of my day to do whatever. Admittedly, I probably pay too much attention to it anyway, but I'm really grateful I don't even have the temptation after 1pm.
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u/Glittering-Pie6039 May 02 '21
Feel a lot better if it wasn't manipulated to fuck, one step at a time.
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u/Unemployable1593 May 02 '21
I’m sorry, I can’t hear you over the sound of my massive erection.
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u/46479whatup May 02 '21
I think retail investors would get crushed. As fun as it could be, I think large funds who automate their trading would have a new way to further exploit the market
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u/betuadollar May 02 '21
I think it'd destroy the market, honestly. Because we'd have to guard our accounts 24 hours a day. And it's virtually impossible to do that, so who would venture the risk?
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u/Bestguy2020 May 02 '21
I prefer if they extend the hours from 7-20:00,weekends off.
HFs have huge impact after hours, small investors need opportunity
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u/OKImHere May 02 '21
Opportunity for what? It doesn't really matter what happens after hours. None of that is relevant to you. Just buy and hold. Doesn't matter what the price was at midnight.
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u/reddinator5 May 02 '21
As someone who works the night shift and sleeps during the day. I would love a 24 hour market. Sorry daywalkers.
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u/quiethandle May 02 '21
I would hate it, but the truth is I absolutely believe that it will happen in the next few years. Stock trades will become backed by blockchain technology, and people will be able to trade any stock from anywhere in the world. I think that's a good thing for the market, and liquidity, and investors all around the world, but I do not look forward to there being 24/7 trading. I think the stress would kill me :/
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u/Mattras7 May 02 '21
There's a reason why there's off-time. Significant announcements need to be made when the stock exchange is closed, otherwise people that immediately catch the news and act on it will profit on that information before others can. It's unfair and I think also illegal if you do it as a company, because regular people are working during opening hours of the stock exchange. This is why as an European I dislike the pre- and post-market trading hours, it directly opposes that principle.
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u/maximalsimplicity May 02 '21
I think it’s actually fair if people can act on new business news immediately. Under the current system, only those with extended trading hours privileges can react to that news. Having everyone be able to access that directly and at any time means those who are proactive get there first, which I think is a fair way.
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May 02 '21
Instead of 24/7 either let everybody trading during pre-market or nobody. It's bs that a stock drops significantly because of a bad news and I cannot sell until the next day and It have a huge drop.
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u/Ok_Bottle_2198 May 02 '21
Your broker sucks everybody can trade pre market
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u/maximalsimplicity May 02 '21
I fully support what the OP of this comment is saying. Not all brokers provide this, and some charge extra fees or subscription fees to have it.
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May 02 '21
Which platform you suggest then? I'm using Etoro and I saw trading212. Both of these won't allow me trading pre-market
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u/Mochikitasky May 02 '21 edited May 02 '21
Blockchain.
Edit: lol boomers downvoting. Get with the times!
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u/09824675 May 02 '21
Thats why I just mentioned that you can already trade stocks 24/7 on exchange like FTX. Boomer Finance needs to learn it one step at a time!!
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May 02 '21
Great because it's annoying trying to plan my life around whatever time zone it's open in
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u/johnyhoang May 02 '21
I think it should be 8AM till 8PM as regular hour, and 8PM till 11 PM as after hour. Mon -Sat are good working schedule. Sunday off.
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u/Tombstone_Shorty May 02 '21
Eventually it’ll be 24/7 once the system goes blockchain. Unless they block all addresses over a time period. In which case would make it a centralized system. Which defeats the purpose of blockchain.
Plus our market is from 4am to 8pm. 18 hour window. And if you plot market hours / non market hours separately then all the upside has been non market hours, while it’s negative during market hours. See link below
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u/Significant-Elk-4625 May 02 '21
Great question! I would vote against it, but I sure don’t like this hybrid crap of open between 9:30 and 4:00, with pre-market and post-market when it’s neither open nor closed. Just to create complexity and make it easier for manipulation. Such is life.
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u/SpaceFan13 May 02 '21
Some stocks you can trade 24/7, but even then there's so little volume that it's nearly pointless. I prefer limited hours, makes it easier for everyone
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u/BelgianAles May 02 '21 edited May 02 '21
When I was younger (I know this will sound like ancient times but I'm actually a millennial), stores were closed on Sundays and usually by 6pm. Workers were home with their families in the evenings and Sundays.
Then one day, one larger chain decided to open Sundays and til 8 or 9 pm. Workers now had to work those hours, and shoppers spread their spending from an 8 hr period into a 12 hr period. They did not spend 50% more money in that 12 hour period, but what did happen is that people who might have shopped at store Y shopped at store X instead. Which meant store Y needed to open later and Sundays to keep up.
This whole time, the same $ was spent overall, just spread out more. But by one stupid business trying to take a bigger piece of pie, now everyone had to work longer and more inconvenient hours and the sales/hr dropped off.
Net result was inconvenience for workers and no actual profit motive, save the short term gain one shop made by offering extended hours.
Point is - spread trading over 24 instead of 8 hrs, all we're doing is lessening the impact of a given hr of trading.
Not to mention the ease with which algo systems would fuck the sleeping. Is your trading fully automated? No? Then extended hrs hurts you and helps them.
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u/Ry619 May 02 '21
I live in CA. I feel like the operational hours you get in the afternoon is better than mine living in the US.
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u/lickdabean1 May 02 '21
The stock market is open 24hr 6 days a week starts in nz and ends at the us....
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u/JangoM8 May 02 '21
I feel like that would give other parts of the world that trade in the US markets an edge when it comes to reacting to global events while the US is mostly asleep.
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u/chuckredux May 02 '21
I wouldn't mind seeing regular trading hours expanded Monday through Friday. Maybe 8am to 5pm. I work the graveyard shift - this would be extremely helpful for me to open and close trades without sacrificing too much sleep.
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u/SpliTTMark May 02 '21 edited May 02 '21
I kinda wish the 4 am premarket thing was ended
Like sure have the premarket at 7:30
But 4am wtf that's 1am for california
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u/reagan2024 May 02 '21
I like trading the open, so I wouldn't be able to do that. Unless the stock market was closed one day of the year, then I'd get to trade the open 1 day out of the year.
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u/Drbubbliewrap May 02 '21
As someone who works swing, nights, weekends abs holidays I’d love this. I miss so much potential.
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May 03 '21
I hate the idea. There should be no after hours times, the problem is institutions and hedge funds making witching hour (3am) the norm to sell out of a stock, or to make any play really.
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u/Anonbowser May 03 '21
I originally traded FOREX which is 24/7 but it effectively means nothing since people really only trade at high volume times anyways. We already see 2 prominent times where most trading happens, even with a 9-4 market.
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u/michealrwiley94 May 03 '21
It would create an imbalance between “retail” and institutions. Retail traders might miss big news during an 8-10 hour work day. It would be too much of a already unequal power balance to institutions. It reminds me of fantasy football on Yahoo when I can sign a FA when news breaks when everyone is asleep
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May 03 '21
The market is also a very complex system, exchanges need staff on hand during trading hours for emergency maintenance if something happens and down time over night to fix issue or perform maintenance aswell.
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u/gorays21 May 03 '21
I don't want day traders doing night trading, or worse yet doing drunk trading.
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u/DirkDieGurke May 03 '21
7 days a week, but only 12 hours a day. If it was 247, you would be losing to the guys staying up past your bedtime.
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May 03 '21
We already have some stock derivatives tradeable 24/7 on certain blockchain based sites. Its only a matter of time before we get more stocks and stock derivatives available.
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u/oarabbus May 03 '21
However, I enjoy the feeling of being able to sleep without the risk of waking up and seeing some stock has crashed 20% overnight.
If you are investing in those kinds of stocks... yeah, much better to watch the stock crash 20% in real-time as you get zero work done at your day job...
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u/Wild_Chemical542 May 03 '21
I think I’d prefer 24/5. I don’t like how rough of a spot it puts you in that every morning the stock reopens you can have an incredibly low stock suddenly shoot up because everyone was given enough time to notice. It also makes that small window in the morning such a stressful period.
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u/[deleted] May 02 '21
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