How 24/7 Trading Changes Market Access, Liquidity, and Execution
Summary
The document argues that electronic markets are moving beyond fixed trading sessions, while traditional market hours still restrict when investors can respond. It contrasts US equities’ regular and extended sessions with FX’s weekday schedule and crypto’s continuous trading. Extended-hours equity activity and reduced weekend concentration in Bitcoin are cited as evidence that trading patterns are changing, although access to a market around the clock does not guarantee deep liquidity at every hour.
The main trading implication is that continuous markets can incorporate news as it arrives and reduce the weekend price gap associated with closed venues. The text also describes delegation through recurring buys, grid strategies, dollar-cost averaging, and advanced orders as ways to execute without constant monitoring. Its evidence includes exchange-specific volume observations, including a reported share of stock perpetual volume outside US cash hours. Those figures are limited to the stated time periods and venue; the article’s claims about liquidity and execution are not a broad, independent comparison across markets.
Key ideas
- Continuous trading lets prices react to news outside traditional market sessions.
- Extended-hours access has grown, but off-hours liquidity varies by asset and venue.
- Weekend closures can leave traditional markets unable to reprice during major events.
- Automated orders can carry out trading plans while a trader is away.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.