Why do we allow MMs, institutions, funds etc trade before/after market hours?

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Why do we allow MMs, institutions, funds etc trade before/after market hours?

In: Economics

2 Answers

Anonymous 0 Comments

The supermarket has all that yummy candy, right? You want some? Awesome.

We just have to make sure our supplier has some. So we talk to the warehouse and the big truck delivers the candy so it’s here when our store opens.

There’s a shit load of back and forth that goes on, for the market makers to ensure there is liquidity in the market, and you can buy the thing you want. There is a whole bunch of other shit the MMs can do which normal traders can’t, all in the name of making the market.

Anonymous 0 Comments

You can trade before market hours too. You can actually trade whenever you want but when the market is closed its harder to find a counter party.