Why can't derivative market run 24 hours a day?

Why can’t derivative market run 24 hours a day ?
At least cash is trading about only 6 hrs, why can’t F&O trade the whole day ? We will have our own nifty fut to look at instead of SGX.
And I think even US derivatives is open for the whole day.
Why can’t we have such a thing in India ?

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There were talks of this happening from October 2019 but the brokers lobbied against it saying that it would unnecessarily increase their costs as they’d need to employ multiple shifts.


At the same time, when derivative market run for the whole day (24 hrs). They get more brokerage/commission.

If this can be done in other countries. Then why not here ? What’s so special about Indian brokers who are not accepting this ?

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@siva , as you are in a brokerage firm,
Will this be a problem for zerodha ?
If it can be done in other countries, then why not here ?
What’s your view on this from zerodha’s point of view ?
In fact this increases the overall participation of retailers like people who are in a job etc.


bhai, you want trade 24 x 7 or what? that too in derivatives :joy: make some money & then take rest…too much of trading is hanikarak

How can one trade for 24 hrs ?
It’s not possible.

It increase participation for all people, like the people who are in a 9 to 5 job. The people with a job and who are enthusiastic about the stock market are unable to trade.

So, when there Is no time limit or atleast when the timing is increased, more people can join in. Doesnt mean that they will be sitting before the screen for 24 hrs.
Not everyone is a day trader, even people who do positional trades can actively particate with no time limits. Also we don’t need to depend on SGX nifty which runs for about 16 hrs and also is manipulated and Indians are not allowed to trade in it.
Thus increasing the market time will be good decision.

Bu the way, did I say that I’m going to trade in derivatives for 24 hrs ? Nope… it’s not possible. Think logically.

I totally agree with this, too much of trading is harmful. But just because the market is open 24*7 doesn’t mean that a trader should always be active. Not everyone is a day trader.
It increases participation and removes time constraints for a lot of people.

i was joking…the real issue is there’s a tendency of traders who may stay active spending longer hours in front of the terminal…yes longer trading window may help some people

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I think there is an overnight market in the GIFT city exchanges. Both on the BSE and the NSE. I think institutions can already use those exchanges to take positions in the overnight market.

Maybe, the cost benefit analysis would not have suited the brokers. The broker/MF lobby is very strong in India. When SEBI came up with the new multicap fund rules, the AMCs immediately lobbied and got a new flexi cap category so that they wouldn’t be affected.


I can give some points for discussion - this from my perspective. There isn’t simply volume for market to operate 24x7.

  1. Majority markets operate for certain duration of the day when there is substantial supply and demand ( Vegetable, fruits), Very less transaction at 12 AM midnight.
  2. Only Some markets, where the supply and demand are continuos for 24 hours, are open 24x7 (Currency, Commodity), as these are globally traded,
  3. If stock market operates 24x7, there will be a period where volumes will be so less. There is a chance for manipulation. How will it be to see an upper circuit because a big buyer came into the market at midnight triggered by some news somewhere in the globe.
  4. Due to less volume, there is not much of price action, In such cases what will happen to the charts and indicators that depend on averages.
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It’s only the index futures market which is being talked about, not the whole stock market. Index futures are traded overnight all over the world. Even for Nifty, the futures are traded on SGX.

Having index futures trade overnight, allows market participants to hedge their portfolio and not be at the mercy of a gap open the next day.

Because traders and brokers like to sleep.
Because trading is a full time business, not part time hobby
Because many traders have a life outside of trading.

Many more reasons.

Just because some Tom Dick and Harry are doing it, doesn’t mean we should also do it. Lets borrow sane things from US and another countries. Not the insane things.

Subject says Derivative Market, Derivative markets means also stock derivatives , not only index derivatives.

Position hedging can be done any time when the market is open. For that why the market has to be open 24X7.

People here wanting to have to have their cake (office job) & eat it too (part-time trading), like as if full-time traders don’t have a life or commitments of their own…


Yes, you’re right the post says derivatives market. But, generally just the trading of index futures suffices because you can hedge against systematic risk. That’s how it happens in foreign markets too. It’s just the index futures that trades overnight, not the stock specific derivatives or even the index options market. I think in those cases, liquidity can become an issue.

True, you can hedge during the market hours but overnight trading is to hedge against any new information that may come after market hours. It’s not necessary for anyone to compulsorily trade as a lot of people are talking about here. It’s nothing to do with losing your sleep or having a work life balance. If there’s no overnight trading, then there’s a gap the next day. If there is overnight trading, then there is no gap because the market is continuous. You may choose to take or exit a position during overnight trading or wait for the regular market to open and then take a call.

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Yes, just because some one gets addicted to the stock market the whole day, doesn’t mean that we should not have longer trading hrs. It’s someone’s personal problem. Doesn’t affect us. Also, a successful/disciplined trader will not get addicted to be on it the whole day. In fact, even now a lot of people tend to look at their positions / holdings etc even after the market close. So, this will not be a problem, it’s up to the individual.

This is a valid point, I totally agree. Like we all will be asleep during the night and FIIs from other country might manipulate our market over night when there is no supply/demand.
24*7 trading might be suitable for cryptos, forex market where the whole world is into it, like one will be awake when the other is not active.

yes, index derivatives is more imp than the whole derivatives. Atleast, this can run for extra hrs.

Let them sleep, Who says them not to sleep ? it’s up to to them :rofl:

Yes, it is a business that requires skill/creativity/discipline etc and no one said that it’s a hobby (in this post).

How is this insane ? There is nothing wrong in taking the good/meaningful things from others.

I really don’t understand this cake example.

no one said that, read the post again. Did anyone here say that ? No. You are assuming it.

If not 24*7, what about extended hrs ?
Like NSE currency derivatives trades till 5 PM and even MCX is open till the night.
How about 16 hrs ? Like SGX nifty. Or extending the time period like
9 AM to 5 PM or
9 AM to 9 PM. ??

BTW, thanks for interacting and sharing your opinions about this.

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Think of 12th march 2020, Trump banned all flights from the US to EU around 8am IST. Markets fell world over and Nifty gapped down by 4% and closed around 8% lower. Wouldn’t it help to immediately hedge your portfolio on such days rather than waiting for the market to open? It could have been worse, he may have banned the flights in the evening of the previous day and we could have had a worse than 4% gap down. There will be many such examples if we dig deeper.

Yes. True I agree.
They need to extend trading hours upto some extend.
3:30 PM is enough!
They need to extend the time till 5 PM or 9 PM at least. (Derivatives atleast).

What’s your view on this ? @nithin @siva
As a broker and a trader. From both perspective ?