undefined | Better HN

0 pointsdlenski9d ago0 comments

I'm extremely skeptical about this.

24/7 trading will definitely burn a lot of extra energy in datacenters, make some speculators a little richer, and make a LOT of retail investors nervous…

But what actual real-world problem will it solve?

I for one am skeptical that more liquidity is always good. I think that having achieved $0.01 spreads, we're well-past the point of diminishing returns with high-frequency trading.

0 comments

elil179d ago

Right? Why do we even need all-day trading?

I have seen a once-daily auction proposed, which seems like a sensible approach to me.

jedberg9d ago

That wouldn't be enough liquidity, and also wouldn't solve the problem if the auction happened at a specific time. Day traders would all put in their bid at the last possible moment.

What solves the day trading problem is doing chunked actions at random small intervals (like between 2-7 seconds). Then you can't put your bid in at the last moment because you won't know when it is. So your best bet is to put in your bid when you've chosen a price, knowing that it will resolve within seven seconds or less.

elil176d ago

I do see your point regarding timing, but I don't see why daily isn't enough liquidity when, for decades, funds from trades have taken multiple days to clear.

The very existence of holiday weekends shows that it's actually totally fine if you go 72 hours without any trades resolving.

1 more reply

pembrook9d ago

> But what actual real-world problem will it solve?

I know most Americans don't travel, but are you aware that timezones exist and there's an entire world outside the US that also invests in US companies?

Why do you think global companies want to list in US capital markets instead of their own? Being the world's most desirable capital markets is a massive boon for the US economy and 24/7 trading will only accelerate this trend.

dlenskiOP8d ago

> I know most Americans don't travel, but are you aware that timezones exist and there's an entire world outside the US that also invests in US companies?

Not only am I dimly aware of the existence of these not-the-US places, but I actually live in not-the-US.

I believe I'm dimly aware of the concept of a timezone too, yeah. https://bugs.python.org/issue35829#msg385309

> Being the world's most desirable capital markets is a massive boon for the US economy and 24/7 trading will only accelerate this trend.

So, no downsides or diminishing returns to offering 24/7 trading?

cucumber37328429d ago

>But what actual real-world problem will it solve?

Having US markets open during the rest of the world's business day.

dlenskiOP8d ago

Okay, what problem does that solve?

j / k navigate · click thread line to collapse

0 comments

elil179d ago

Right? Why do we even need all-day trading?

I have seen a once-daily auction proposed, which seems like a sensible approach to me.

jedberg9d ago

That wouldn't be enough liquidity, and also wouldn't solve the problem if the auction happened at a specific time. Day traders would all put in their bid at the last possible moment.

elil176d ago

I do see your point regarding timing, but I don't see why daily isn't enough liquidity when, for decades, funds from trades have taken multiple days to clear.

The very existence of holiday weekends shows that it's actually totally fine if you go 72 hours without any trades resolving.

1 more reply

pembrook9d ago

> But what actual real-world problem will it solve?

I know most Americans don't travel, but are you aware that timezones exist and there's an entire world outside the US that also invests in US companies?

dlenskiOP8d ago

> I know most Americans don't travel, but are you aware that timezones exist and there's an entire world outside the US that also invests in US companies?

Not only am I dimly aware of the existence of these not-the-US places, but I actually live in not-the-US.

I believe I'm dimly aware of the concept of a timezone too, yeah. https://bugs.python.org/issue35829#msg385309

> Being the world's most desirable capital markets is a massive boon for the US economy and 24/7 trading will only accelerate this trend.

So, no downsides or diminishing returns to offering 24/7 trading?

cucumber37328429d ago

>But what actual real-world problem will it solve?

Having US markets open during the rest of the world's business day.

dlenskiOP8d ago

Okay, what problem does that solve?

j / k navigate · click thread line to collapse