24/7 Trading Is Coming. But Is It a Good Thing?

Group 1 - The stock market has transitioned from traditional trading floors to predominantly electronic trading, with after-hours trading becoming increasingly common and potentially the new norm [1][2] - Several established brokers are already offering after-hours trading, and a new SEC-approved 24X National Exchange will launch on September 29, allowing trading of U.S. equities from 4 a.m. to 8 p.m. ET on weekdays [2] - Extended trading hours provide convenience for retail and international investors who may not be able to trade during regular market hours [3][4] Group 2 - The ability to react to real-time events is a significant advantage of extended trading hours, allowing investors to respond to news such as earnings releases or economic data as it happens [5] - However, trading outside regular hours can carry increased risks, including emotional decision-making and potential long-term damage to investment portfolios [6] - Lack of liquidity during extended trading hours can lead to higher costs and risks, with wider bid-ask spreads making it difficult to execute trades effectively [7][8]