Why do stock markets have an opening and closing time?
In: Economics
Although trades appear to take milliseconds, there is still a lot that needs to happen behind the scenes. Things need to be reconciled and tallied, cash topped up or withdrawn from bank accounts or between brokerages. Some of these are hard to do when the market is active. Certain contracts also rely on things like “market close” pricing. It all seems electronic and most of it is, but there is still paperwork and human work needed to keep things in order. Plus why spend the cost of keeping a market open when most of the customers are asleep.
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