Hi , i have been curious for a while now and so I thought its best a open a thread and ask people who know .. how come (dow/nasdaq/s&p) futures keep trading 24/7 .. on what exchanges are they traded ? and why are they traded 24/7 ? im very curious , it would be very nice if someone can explain , thanks
US index futures trading 24/7 .. please explain
- Thread starter GauravC
- Start date
US market are traded by investors/traders from all over the world. There are many fund managers / hedge fund mgrs sitting in London, Tokyo, Hongkong, Sydney, Singapore managing the funds that are benchmarked against US indices.
When Currrency mkt can trade round the clock then why not Indices futures ? Thats when many exchanges started offering the facility of 23 hrs trading. The have regular US Mkt hour trading.. that is extended 15mins beyond spot market opening timings.. and then Globex session.. which runs for remaining time.
All Exchanges are run like corporate and they do compete with each other.. Result of that was in Sept 2008. Russell 2000 futures (small cap index for US mkt) was moved from CME to ICE. Nothing changed except the trading Symbol.. and interested people started trading on ICE with new symbol.
bottomline, there was requirement from mkt participants for trading beyond regular US hours, there is competition among service provider (i.e. exchanges) and rule and regulations are flexible enough... IMO, these are the factors that resulting in this round the clock trading.
Theoratically that is fine, but in reality, the trading volumn during globex session is hardly 5 to 10% of regular Trading volume of US mkt timing. so Traders discount the Globex session action as per their strategy. If mkt is open 24hrs does not mean that traders also need to trade 24 hrs.. it is just that there is an option available.
Globex session was active on many significant events of recent past and gave more time to traders to manage their risk and exploit opportunity presented.
Happy Trading.
When Currrency mkt can trade round the clock then why not Indices futures ? Thats when many exchanges started offering the facility of 23 hrs trading. The have regular US Mkt hour trading.. that is extended 15mins beyond spot market opening timings.. and then Globex session.. which runs for remaining time.
All Exchanges are run like corporate and they do compete with each other.. Result of that was in Sept 2008. Russell 2000 futures (small cap index for US mkt) was moved from CME to ICE. Nothing changed except the trading Symbol.. and interested people started trading on ICE with new symbol.
bottomline, there was requirement from mkt participants for trading beyond regular US hours, there is competition among service provider (i.e. exchanges) and rule and regulations are flexible enough... IMO, these are the factors that resulting in this round the clock trading.
Theoratically that is fine, but in reality, the trading volumn during globex session is hardly 5 to 10% of regular Trading volume of US mkt timing. so Traders discount the Globex session action as per their strategy. If mkt is open 24hrs does not mean that traders also need to trade 24 hrs.. it is just that there is an option available.
Globex session was active on many significant events of recent past and gave more time to traders to manage their risk and exploit opportunity presented.
Happy Trading.
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