Expert Opinions on the Future of 24-Hour Markets

In October 2024, the New York Stock Exchange (NYSE) announced plans to extend its trading hours to 22 hours per day, five days per week, while Nasdaq has committed to adopting a 24/5 schedule by 2026. These moves mark a major shift in how and when investors can access U.S. securities, with significant implications for the market and its participants.

Let’s explore expert opinions on the potential effects of 24-hour trading, from the key opportunities and challenges to the strategies you can use to navigate them.

Opportunities and Challenges of 24-Hour Markets

Opportunities

The primary benefit of switching to a 24-hour trading window is the convenience of unlimited access to the market. In theory, it allows you to buy or sell securities at any time that fits your schedule rather than being constrained to traditional working hours.

Not only does this provide additional flexibility when juggling trading with other commitments, but it also lets you respond to market-moving events—such as earnings announcements, geopolitical developments, or economic data releases—in real time instead of waiting for the opening bell.

“Being able to trade at any time of the day is convenient and gives you an advantage, especially if you need to react to events in other countries and time zones,” said Alex Tsepaev, chief strategy officer of B2PRIME Group. “Early adopters will attract more capital.”

A 24-hour market also aligns trading access with the reality of today’s nonstop information environment and increasingly interconnected world. “The news cycle, overseas markets, and social media are already 24/7, why not trading?” said Stephen Callahan, trading behavior analyst at Firstrade.

Lastly, a round-the-clock trading schedule is naturally more inclusive of global participants, which may contribute to higher overall liquidity.

Challenges

While the prospect of 24-hour trading brings clear opportunities, it also introduces several potential challenges for investors. “More access sounds good, but convenience doesn’t equal better results,” said David Materazzi, founder and CEO of Galileo FX.

One of the most significant risks is that actual liquidity could become fragmented across different hours, potentially making it lower at any given time. Off-peak periods, such as late-night sessions, could be especially risky.

“Liquidity is a function of having many players in the market to absorb order flow,” said Dan Passarelli, president of Market Taker Mentoring. “There will be fewer traders trading at night, leading to lower liquidity.”

This can increase the likelihood of slippage—getting a different price than expected on an entry or exit from a trade—due to wider differences between bids and asks. “With less liquidity comes wider spreads and thus less reliable pricing, which is a cost to traders,” said Nick Battista, director of market intelligence for tastylive.

Sharper price swings may also occur, especially after major late-night developments. “Volatility in single names will likely increase,” said Battista. “News events and political events will likely skew pricing overnight, especially with lesser liquidity overall.”

Implications for Investors

The effect of 24-hour markets on investor outcomes is a matter of debate. Some experts believe it could encourage more frequent trading and emotional decision-making, potentially undermining long-term investment success.

“Twenty-four-hour trading tempts people to trade more and think less,” said Materazzi. “Bad combo for building wealth. When the market’s always open, emotions drive decisions. And that kills long-term results.”

Passarelli echoed his concern, emphasizing that people and markets alike benefit from periods of recovery. “Humans need to rest in order to mentally and physically recuperate,” he said. “And so do markets. Not having a cool down period for traders and investors to collect their thoughts will absolutely lead to more extreme market moves and increased frequency of market crashes.”

However, not all experts are convinced that these risks outweigh the benefits. Some consider the expansion of access an undeniably positive development for investors, especially once the market adapts.

Implications Beyond Investors

Transitioning to 24-hour markets would inevitably affect far more than investors. For instance, some experts expect a direct impact on the broader labor force and various aspects of operations.

“Algorithms and automation are great, but the market is made by people, and the round-the-clock format can quickly burn out teams,” said Tsepaev. “We will have to build work schedules in a new way and generally rethink what it means to ‘be in touch.’ There will also be increased costs due to hiring and maintaining multiple shifts or overtime pay, and greater expenses related to employee health and burnout prevention.”

Many believe this will be significant enough to require new regulations eventually. “Twenty-four-hour trading leads to firms and exchanges needing to hire more staff and a whole new host of operational processes,” said Materazzi. “That raises costs, increases error risk, and forces regulators and firms to chase a moving target. As enterprising traders learn to game the system, it will inevitably lead to regulatory responses.”

It could also strain existing technology and support frameworks, incentivizing upgrades to traditional financial infrastructure. “Not everything is working 24/7,” said Tsepaev. “Current market infrastructures, such as banks and clearing houses, remain tied to traditional business hours, posing logistical challenges.”

Other experts expect the widespread impact to be less dramatic, believing the market and its supporting frameworks will normalize after a gradual adaptation period.

“Generally, I’d expect little impact in market structure from this move, as the vast majority of trading will still be done during normal US market hours,” said Battista. “This will certainly increase operational costs for brokers and exchanges, and potentially require new regulatory frameworks, but as the process is normalized, these costs will likely decrease.”

Strategies for Success in a 24-Hour Market

One fundamental way to protect yourself from the risks of round-the-clock markets is to be tactical with trade execution. “Use price discovery via limit orders,” said Battista. “In a thinly traded market, spreads will likely be much wider than normal. Avoid market orders, and keep in mind swings in price can be much more volatile with less liquidity.”

Similarly, many experts recommend sticking to regular trading hours unless you have extensive investing experience and a high risk tolerance. “The typical investor should stay clear of participating in late-night trading,” said Passarelli. “There is a case for a small number of sharp traders to profit from outlier price moves stemming from illiquidity, but their profits will come at the expense of the typical retail investor.”

Still, the nonstop nature of a 24-hour market means active investors must be constantly vigilant, even during extended hours. “When the market is running nonstop, you need to be prepared for constant monitoring and quick decision-making,” said Tsepaev. “There are always risks, even at night, so the approach to managing them must also change.”

This could mean having to keep up with breaking developments at all times. “Like all other changes in the financial markets, the best safeguard is to stay informed,” said Callahan. “Take advantage of all resources and financial news coverage. Be careful where you get your info.”

The Bottom Line

A transition to 24-hour markets would significantly expand global access to U.S. securities, potentially resulting in a higher overall volume of market participants. However, it could also introduce new risks, including periods of low liquidity and heightened volatility—especially during extended hours—which may lead to large overnight price swings.

While experienced traders may be able to capitalize on these conditions, many investors will likely benefit from sticking to traditional trading hours. Meanwhile, the broader financial industry—including its operations, regulations, and infrastructure—will need to adapt to a market that never closes.