Why 24/7 Trading is a Bad Idea

The New York Stock Exchange and Nasdaq are seeking regulatory approval to extend their trading hours significantly. Nasdaq aims for 24/7 trading by late 2026, and the London Stock Exchange is exploring similar possibilities. Retail brokers already offer overnight trading through alternative platforms and "dark pools." Platforms like Robinhood and Charles Schwab are actively expanding their after-hours trading services to meet growing demand. However, an economist warns about the downsides of continuous trading. Continuous trading could lead to problematic price discovery due to lighter reporting requirements. Amateur investors risk receiving unfavorable prices in extended trading sessions due to lack of experience. Traditional market breaks allow for crucial post-trade processes like settlement and reconciliation. Perpetual trading also removes the opportunity for traders to rest and refresh their trading strategies. While continuous trading may seem modern, the article suggests that limited trading hours provide necessary market stability.