I came to know that NSE is extending the trading hours in India.
For equity till 5pm and F&O till 11.30pm.
I feel this is not a good move for the retail traders especially the positional traders like me because we have to watch the position till 11.30 pm. It create mental stress because no outing, no personal time etc we always have to watch the P&L to check the market condition. NSE says the logic behind seeking extended market hours is to have an overlap with the European markets which the exchanges hope would mean increased volume.But it definitely will not increase the volume in market because many retail people will quit their trading job either because of stress due to long trading hours or by blowing their account by over trading. We all know that the success rate for day traders is estimated to be around only 10% .It will increase if trading hours increased. So in long term this idea will not help to increase the volume in market instead it do the opposite. and the real factors had nothing to do with the trading hours. For example, the SGX Nifty trading took off in a big way because traders did not have to pay STT while trading in the SGX as opposed to the Indian markets .Still There are so many negative points than the positive.
Point 1: If F&O market traded til 11.30 pm after equity market closed there will be a gap up or gap down will happen in equity market next day
2: The high volume takes place in the first and last hour of trading because retail traders getting executed in the first hour along with news based trades. The last hour goes in squaring off their positions. Most of the mid-session is generally dull and any movement is largely news-driven. Extending the market hours will result in extending only the dull session of the market.
3:Longer trading hours will mean greater pressure on brokers thus lead to increase in brokerage charges even taxes.
4: Longer trading hours in the Indian stock markets can potentially decrease the over night risk is the only positive reason pointed by many experts . we all know that we can hedge our position during market hours if there is some global events going to happen.even if traders feel about the over night risk they can always hedge their position in us market or any global market.Let the retail traders to take hedge in global market is the best solution i think.
Better SEBI create a platform to vote for new ideas from market participant before execute it in the market.
For equity till 5pm and F&O till 11.30pm.
I feel this is not a good move for the retail traders especially the positional traders like me because we have to watch the position till 11.30 pm. It create mental stress because no outing, no personal time etc we always have to watch the P&L to check the market condition. NSE says the logic behind seeking extended market hours is to have an overlap with the European markets which the exchanges hope would mean increased volume.But it definitely will not increase the volume in market because many retail people will quit their trading job either because of stress due to long trading hours or by blowing their account by over trading. We all know that the success rate for day traders is estimated to be around only 10% .It will increase if trading hours increased. So in long term this idea will not help to increase the volume in market instead it do the opposite. and the real factors had nothing to do with the trading hours. For example, the SGX Nifty trading took off in a big way because traders did not have to pay STT while trading in the SGX as opposed to the Indian markets .Still There are so many negative points than the positive.
Point 1: If F&O market traded til 11.30 pm after equity market closed there will be a gap up or gap down will happen in equity market next day
2: The high volume takes place in the first and last hour of trading because retail traders getting executed in the first hour along with news based trades. The last hour goes in squaring off their positions. Most of the mid-session is generally dull and any movement is largely news-driven. Extending the market hours will result in extending only the dull session of the market.
3:Longer trading hours will mean greater pressure on brokers thus lead to increase in brokerage charges even taxes.
4: Longer trading hours in the Indian stock markets can potentially decrease the over night risk is the only positive reason pointed by many experts . we all know that we can hedge our position during market hours if there is some global events going to happen.even if traders feel about the over night risk they can always hedge their position in us market or any global market.Let the retail traders to take hedge in global market is the best solution i think.
Better SEBI create a platform to vote for new ideas from market participant before execute it in the market.