Will NSE extend trading hours from 3.30pm to 11.55PM in derivative segment ?
Very unlikely for entire derivative segment. But, there’s is a talk to extend trading in index futures.
Hope they implement this soon. Life has become boring after 3:30 pm, looking forward to this extended hours dopamine.
There is life outside markets too.
If trading hours are extended, either you earn more or you lose more.
If you earn more what will you do with it, because you dont have time to spend it.
If you lose more, then what will you do for your living.
Now the third case, you make same money. Then whats the point of even trading longer hours.
By your logic forex traders haven’t slept for so many years, as it is 24/7. You choose when to trade and what to trade and if one is so mentally weak that he can’t stop himself from taking a trade just because market is live than it doesn’t matter what the trading hours are, sooner or later he will blow up.
Atleast if trading hours are extended our trades can have more time to work without taking an overnight position.(depending on your strategy).
I said that because he said life is boring after 3.30.
So it looks like he wants to trade all day.
Oh!! Hopefully he is just kidding, market is a very expensive place to get a dopamine rush.
no equity market in the world trades for so many hours in a day! nse must be on something strong!
it’s puff puff pass, nse… not puff puff puff puff puff puff!!
Entire market philosophy compressed into 4 lines by our dear friend @Jason_Castelino
Fully agree. I too feel it won’t be a full extension. Only futures trading might be made 24*5 like Dow and Nasdaq futures. What many traders do currently (SGX) will be replaced by nifty futures
Trading hour extension if it happens will not affect me. Happy with autotrading systematic option buying strategies. No adrenaline or dopamine issues. Just perpetual zen mode
Trading should not affect my health, my relationships or anything else I want to do. A fact I figured out the very first year I started trading. This philosophy has stayed with me since then.
The idea of extending trading hours appears to be a not good idea, as it would be difficult to manage consistently. Moreover, if trading is available for a longer period of time, there is a higher likelihood of traders being spread across different time zones, which could present further challenges. Just a thought
I don’t think it’s a good idea specially for positional traders. Because they have to sit in front of the screen till the market closes. Intraday traders may book their daily targeted profit and take exit. But positional traders can’t do so.
One of them would be a significant reduction in the expectation of what can be day traded from the index.
If someone is expected to daytrade 50–100 points easily on the Nifty now, I think that expectation will be reduced to 10–20 points once extended trading hours are implemented.
For example, the index derivatives in the US seem to be trading round the clock. If you browse various USA trading chatrooms, you will notice that index traders’ expectations there are very low in comparison to index traders in Indian markets. Scalping 5 or 10 points on the S&P is considered a great victory. So much effort and planning for so little payoff.
So if these extended trading hours kick off here, we will need more planning, precision, and effort for very little reward. It is going to put all those lazy folks out of this game.
Reward depends on the position size, not the number of points. If they are scalping 5 or 10 points their position size would have been huge too. It’s about the profit gained at the end of the day not the number of points you gained.
Also if getting10 points are hard then loosing 10 points will be hard as well, it works both ways.
S&P has price of 4000. Nifty is 18k. Comparing in points is pointless.
S&P traders don’t have to pay crazy charges
They have one of the most liquid markets so slippage is much lower.
Both combined means that a) that they have lower breakeven b) They can efficiently target smaller moves.
In India, we have to target larger moves in general, hold all day. Targets don’t work, because cost is fixed and high.
ofc, competition is also higher and that is also a factor. All of these will not change for Nifty.
My guess is not much would change. Some edges might be affected, esp around open and may have to be adapted to new environment. Indian Index futures will probably trade similar to how SGX futures trades today. Probably we could hide the overnight data from backtest and things would be similar. Could be wrong, we will know after some time. Uncertainty will increase meanwhile. People will have something to blame.