Stock exchanges were seeking to extend their trading hours for recent competition with Singapore Exchange.
We all know, recently the termination of SGX Nifty created an ugly war between Indian Stock Exchange vs SGX. SGX said they will launch similar product again from June bypassing NSE!
This type of move was inevitable after the below reaction from SGX! So the main credit goes to SGX.
https://www.bloombergquint.com/markets/2018/04/11/sgx-to-list-new-indian-derivatives-in-june
NSE was clearly very angry with the move by SGX.
So, most probably NSE-BSE is going to extend the timing soon. Just see today's reaction.
'Extended trading hours will give investors an opportunity to hedge market risks beyond the traditional cash market hours' -NSE Chief.
'Indian market in line with the International market and Indian commodity derivative markets”.- BSE Chief.
Here is the link:-
https://www.bloombergquint.com/mark...anges-to-extend-timing-for-equity-derivatives
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This is a big decision, as the extended trading hour will change the market structure.
Gap up down possibility will decrease.
Volatility will decrease which will create an adverse effect in options trading also, range-bound time will increase.
Option premium will probably increase.
Now 15 hr intraday option writing time using intraday leverage.
Overall this will create more opportunities for investors and traders and cut the overall market risk.
It will effect option trading more.
The extended trading hour is going to change traders daily routine also.
As long as the market is open there will be more addiction to trade also(bad psychological effect).
Feel free to share your view as a derivative trader, u like it or u dislike it.
Let's discuss all probable pros and cons here.
We all know, recently the termination of SGX Nifty created an ugly war between Indian Stock Exchange vs SGX. SGX said they will launch similar product again from June bypassing NSE!
This type of move was inevitable after the below reaction from SGX! So the main credit goes to SGX.
https://www.bloombergquint.com/markets/2018/04/11/sgx-to-list-new-indian-derivatives-in-june
NSE was clearly very angry with the move by SGX.
So, most probably NSE-BSE is going to extend the timing soon. Just see today's reaction.
'Extended trading hours will give investors an opportunity to hedge market risks beyond the traditional cash market hours' -NSE Chief.
'Indian market in line with the International market and Indian commodity derivative markets”.- BSE Chief.
Here is the link:-
https://www.bloombergquint.com/mark...anges-to-extend-timing-for-equity-derivatives
*******************
This is a big decision, as the extended trading hour will change the market structure.
Gap up down possibility will decrease.
Volatility will decrease which will create an adverse effect in options trading also, range-bound time will increase.
Option premium will probably increase.
Now 15 hr intraday option writing time using intraday leverage.
Overall this will create more opportunities for investors and traders and cut the overall market risk.
It will effect option trading more.
The extended trading hour is going to change traders daily routine also.
As long as the market is open there will be more addiction to trade also(bad psychological effect).
Feel free to share your view as a derivative trader, u like it or u dislike it.
Let's discuss all probable pros and cons here.
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