Increasing trading hours can have both advantages and disadvantages, so whether it is a boon or a bane depends on various factors.
Advantages of increasing trading hours:
- Greater flexibility: Longer trading hours would allow traders to trade at a time that is more convenient for them, which would increase the flexibility and accessibility of the market.
2. More liquidity: Longer trading hours can also increase liquidity in the market, as there would be more time for buyers and sellers to find each other, which could reduce bid-ask spreads and potentially lead to more efficient pricing.
3. Global participation: Longer trading hours could enable participation from investors in different time zones, which could lead to a more global and diverse investor base.
Disadvantages of increasing trading hours:
- Increased fatigue and errors: Longer trading hours can lead to fatigue and errors for traders, which could negatively impact market efficiency and performance.
2. Lower quality trading: Longer trading hours could also result in lower quality trading as traders may be less focused and less willing to take on risk when they are tired.
3. Negative impact on work-life balance: Longer trading hours can have negative consequences on the work-life balance of traders and investors, which can lead to negative effects on mental and physical health.