Investors with TD Ameritrade Holding Corp. (NASDAQ: AMTD), a brokerage firm in Nebraska, have some good news to greet their day. The firm extended their trading hours to twenty-four hours a day for five days a week from Monday through Friday. Currently, this applies only to popular exchange-traded funds but soon will be applicable to individual stocks as well.
Traders availing services of the TD Ameritrade can either buy or sell popular shares such as the SPDR S&P 500, iShares MSCI Emerging Markets and the SPDR Gold Trust at any time during the week. It is worthwhile to note that the trades that are made between 8 P.M. and 4 A.M. are limit orders, meaning that stocks can be bought or sold at a specified price limit or slightly higher. Also, these orders are executed through an electronic communication network in which traders are connected electrically.
The extended trading hours allow a layman to buy and sell his or her exchange-traded funds as soon as there is phenomenal news that can change the market. Without the extended hours, a person will have to wait until the stock market opens the next day to buy or sell stock.
By extending the trading hours, the team at TD Ameritrade has opened up a seamless process that allows the average investor to react to news even if the market is not open during the time of the day. Of course, TD Ameritrade, and a number of other brokerage firms do have the option of trading during both pre-market and after-hours sessions, but TD Ameritrade allows investors to trade during the window between the after hour sessions and the pre-market trading.
The officials at TD Ameritrade want trading to be as flexible as online shopping. TD Ameritrade will also enable 24-hour trading services for shares from Apple and Amazon once the liquidity for the current assets becomes sizeable.
The 24-hour trading facility is a great market tactic to get more people buying and selling their shares both in terms of stocks and other assets.
The concept of 24-hour trading sessions has stemmed from a boom in the trade of cryptocurrencies such as bitcoin which trade for 24 hours a day, 7 days a week. Experts observed that a 24-hour trading session could work well for liquid assets like futures as well.
The Vice President of TD Ameritrade observes that although 'round the clock' trading has certain benefits, it is a lot riskier than trading during the market hours. He emphasizes the fact that one has to be aware of the slightest changes in demand and supply in order to avoid losses during trading.