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24 hour stock trading is a needless endeavour
Key Takeaways (30s Read)
Nasdaq is considering a proposal for 23-hour trading, raising concerns about its impact on traders.
Nasdaq is planning to submit paperwork for a 23-hour trading week, which raises concerns about potential negative impacts on traders' health and market dynamics. Currently, the Nasdaq operates for 16 hours a day, and extending trading hours could exacerbate the blur between trading days, reducing the necessary downtime for traders to process information. The proposed structure includes a morning session starting at 4 a.m. and ending at 8 p.m., followed by a one-hour break, with a night session beginning at 9 p.m. and ending at 4 a.m. This could further advantage algorithmic trading, leaving human traders at a disadvantage due to decreased time for reflection.
AI Analyst
AI Opinion
"The consideration of a 23-hour trading window by Nasdaq is driven by the desire for increased market efficiency and the rising prevalence of algorithmic trading. However, this shift could prove detrimental to human traders who require time to reflect and develop strategies based on market information. While algorithms can react swiftly, individual traders might find themselves at a significant disadvantage in such a continuous market environment. Additionally, extended trading hours could increase market volatility, posing risks for short-term traders seeking to capitalize on price movements. There must be caution against transforming the market in a way that serves only a subset of participants, disregarding the broader implications for all market players."
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