Hot Features
Premium
Register for streaming realtime charts, analysis tools, and prices.
Stock trading has undergone a dramatic transformation over the years. Decades ago, markets operated within rigid timeframes, with limited access and exclusivity favoring institutional investors. For instance, when trading first began on the Australian Securities Exchange (ASX), it was not yet a fully integrated exchange. Separate markets existed in Melbourne and Sydney, trading was restricted to a 10:00 a.m. to 4:00 p.m. window, and brokers often took long lunch breaks. Derivatives trading was also highly restrictive, with an initial deposit of $50,000 required to trade a single Share Price Index (SPI) contract on the Sydney Futures Exchange.
Today, the landscape is changing rapidly. In the U.S., exchanges and brokerages are pushing for 24-hour stock trading to accommodate global investors and retail traders. Nasdaq has announced plans to introduce 24-hour trading, five days a week, by the second half of 2026, pending regulatory approval. The New York Stock Exchange (NYSE) has already extended its trading hours to 22 hours per day following approval from the U.S. Securities and Exchange Commission (SEC) in 2024. Additionally, 24 Exchange (24X), backed by Point72 Ventures, has secured approval to operate the first fully round-the-clock stock exchange in the U.S., with a phased rollout beginning with standard market hours before expanding to overnight sessions.
Brokerages are also adapting to this shift. Platforms like Robinhood and Interactive Brokers have introduced extended trading hours, allowing investors to access stocks and ETFs beyond traditional timeframes. While some view this shift as a natural evolution of the market, others fear it could lead to negative consequences.
Addressing Concerns Over 24-Hour Trading
Critics of expanded trading hours often raise concerns, but these objections are rooted in outdated assumptions rather than market realities.
1. Volatility Misconceptions
Many skeptics argue that extended trading will increase market volatility. However, volatility is a natural function of financial systems, independent of trading hours. Historically, markets have experienced extreme price fluctuations even within standard eight-hour sessions. Expanding trading hours does not inherently cause instability; instead, it provides more opportunities for price discovery and market efficiency.
2. Liquidity Fears
Some argue that liquidity may not improve with extended hours, assuming that trading volumes will remain stagnant. However, the global foreign exchange (FX) market already operates 24/5 with a sequential flow of liquidity. The overlap between major financial hubs—such as London and New York—creates peak liquidity periods. A similar pattern is likely to emerge in stock markets, with Asia and Europe contributing additional liquidity at times convenient for their respective regions.
3. Encouraging Reckless Trading
Another concern is that round-the-clock access will lead to excessive, undisciplined trading. However, traders prone to reckless behavior are already engaged in high-frequency trading in FX and cryptocurrency markets. Expanded stock trading hours do not inherently increase risk-taking; rather, they provide structured opportunities for disciplined traders to execute strategies with greater flexibility.
Adapting to a Changing Market
Markets are evolving, and traders must choose whether to resist or embrace these changes. While some remain skeptical, history has shown that financial markets thrive on innovation and adaptation. Those who recognize the advantages of extended trading hours will be better positioned to capitalize on emerging opportunities.
Learn from market wizards: Books to take your trading to the next level
