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I've often wondered the same. It is perhaps a calming influence. Companies can release results after the close, and everyone gets to think on it overnight. In
by ISL 11y ago
I've often wondered the same.
It is perhaps a calming influence. Companies can release results after the close, and everyone gets to think on it overnight. In a logarithmic sense, the market's 33% uptime is quite close to 100%, and it allows for a rhythm, maintenance, and reflection that would be lost to continuous trading.
Most animals sleep, and we've even evolved the seven day week. Perhaps it's a good thing.
If you take the opposite view, someone will always trade with you after hours at the right price.
- nickff 11y agoBut deadlines also rush people, often into a frenzy (I.e. Auctions); and the uncertainty of what will happen overnight could cause crashes to be more severe. It may be that leaving markets open overnight would calm trading all day. I am not sure either way, but it seems that 24/7 trading would be worth a try.
- codexon 11y agoThere are very few people trading after/pre market hours. And those after/pre market hours are only 4-6 hours.
- carbocation 11y agoRegular hours for the NYSE are 9:30am-4:00pm (6.5 hours). 4-6 hours in that context is quite significant.
- codexon 11y agoIt is still very far from 24 hours.