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Trading Hours

Discussion in 'Trading/Investing Resources' started by MovingAverage, Mar 3, 2020.

  1. MovingAverage

    MovingAverage Smoke me a kipper

    Likes Received:
    Jan 23, 2010
    Just got a call from someone that asked a pretty simply question that I've never really considered before.

    The ASX opens 10am and closes 4pm. In this day and age of relatively fast and effecient electronic trading and settlement why is the market still only open 10am to 4pm? Why can't market hours be extended to 9am to 5pm? I'm sure there's a good reason, I just don't know what it is. Any ideas?
  2. Zaxon

    Zaxon The voice of reason

    Likes Received:
    Aug 5, 2011
    I'd go even further and ask why it can't trade 24 hours a day? If I can go to Amazon and buy a pair of scissors at 3 am, why can't I go to my broker and buy some BHP at 3 am?

    The only downside to longer trading hours, is that the markets would be less liquid outside of business hours. But that's not reason enough to not let them trade. It just means wider spreads.

    So many times I see the US market doing something crazy overnight. Imagine if you could immediately take action on the ASX, rather than having to wait 8 hours for it to open. Perhaps your competitive advantage could be that you're a night owl.

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