As anyone trading anything in 2020 knows, volatility has returned with a vengeance. This return of drama in just about every asset class led us to investigate the question of why exchanges set the hours they do. After all, in periods when market moving news is happening at an accelerated cadence (like now), many traders don’t want to sit on their hands until the OPEN sign is flipped.
As best as we can tell, the “regular” hours that still drive much of the liquidity on US equity exchanges tie back to the 19th century, when “curb” traders convened on the streets of lower New York once and then twice per day to transact directly with each other. Ultimately, “continuous trading” and “market hours” were instituted as a way to create a more dynamic environment for the evolving needs of traders, but old habits — or should we say hours — die hard.
For better or worse, we’ve observed that the crypto markets in general and bitcoin specifically have reflected the market tumult enveloping equities, commodities, futures, bonds and other asset classes. In fact, during the first two months of 2020, bitcoin has moved by over 3,300 points in dollar terms. That’s enough to make even hardcore HODLRs dizzy and some speculative traders giddy.
At LedgerX, we know that there is no “off” period when it comes to decentralized assets that trade on a global basis. That’s why LedgerX provides its customers with the ability to trade bitcoin derivatives on our regulated platform at any moment, on any day and at any time. That means weekends and holidays too.
Because opportunities to take advantage of big anticipated moves in bitcoin don’t care about “regular hours.” So why should you?