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> is going to cause liquidity issues. why would a market open for long periods cause liquidity issues? I would expect that it _increases_ liquidity, as there'd
by chii 3y ago
> is going to cause liquidity issues.
why would a market open for long periods cause liquidity issues? I would expect that it _increases_ liquidity, as there'd be a trade available at all times, rather than just business hours.
- unyttigfjelltol 3y agoPeople might misunderstand that there is similar liquidity at all operating hours, and try to trade in size on that basis and be alarmed by price changes , when the liquidity is actually during specific times. Right now when prices go haywire outside regular market hours, there's a asterisk, stop loss orders and margin calls aren't necessarily triggered or executed, and people tend to wait patiently to seek liquidity market open.
- chii 3y ago> be alarmed by price changes only because they're not knowledgable enough. And if they're an amateur, they will lose to the pros - it's a shark infested trading market out there. I don't see any problems with that.
- unyttigfjelltol 3y agoUntil it's pros themselves responding to out-of-hour VAR shocks, and doing it outside hours. Not that it doesn't already happen, but its a matter of degree.