Opinion: How NSE’s Extended F&O Trading Hours Will Impact Everyone
As per some reports, NSE is probably an inch away from introducing extended trading hours for F&O traders as the exchange has already submitted the request and waiting for SEBI’s approval. In case this attempt finally becomes a success, what would be its implications?
Firstly, talking from the perspective of the exchange, it is definitely a good move to further scale the business. NSE charges an exchange transaction fee on every single trade which is 0.0019% on equity futures and 0.05% on equity options premium. Extended trading window will simply translate into more number of traders which will directly bolster the exchange’s business.
However, it will also be beneficial for other market intermediaries such as brokers, SEBI, government, etc. The higher the number of trades, the higher a stock broker can generate brokerage. SEBI charges a flat fee of INR 10 per crore in the equity F&O segment which will help the regulator beef up its income. The government will benefit from higher collection via GST and STT.
But what’s in it for traders? Well, the major benefit is the proper risk management. The timing of the second session has been specifically set around the US market opening (from 6:00 PM to 9:00 PM IST) which will help traders manage their positions as per the movements in the US stock market.
In the current scenario, if the US markets fall sharply (or rally) in the evening or night, the Nifty opens with a gap down (or gap up) to reflect the global sentiments which does not allow traders to exit or manage their positions. But it will be better if they get the opportunity to adjust in real-time in the evening itself. Hence, all the gaps we see in the morning would likely be minimized to a great extent.
It will also provide an opportunity for office-going employees who cannot trade during the day. They can take their trading bets in the evening. In my opinion, this is a much-required step from the exchanges, solely from the risk management perspective. What’s your thought?
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What a brilliant writer you are!Like 1
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Just like my readers :)Like
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In a week there are 31 hours and 15 minutes of trading in F & O section. Now it will be extended by another 15 hours to a total of 46 hours and 15 minutes. Will this extra duration of trading , will the Option Premiums be more expensive due to more Theta ?Like
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Probably not. The number of trading days still remain the same.Like
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Then Theta decay will be slower .. over 9 hours instead of 6 hours ?Like
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buy bank nifty call 44500 380 stop loss 230.1 and target 518.5 / 549.8 intradayLike
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great information sirLike 1
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Thanks, Kalpesh.Like
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no use of hour extentionLike
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@Pradeep Maurya buy bank nifty call 44500 380 stop loss 230.1 and target 518.5 / 549.8 intradayLike
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Sir Please teach me some option strategies and long term investment strategiesLike
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usko agar ata trading to writer thodi ban gaya hotaLike 3
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if cash/equity market will be closed by 3:30pm or it will run till 9:pm? if that has been closed how derivative will go on ? based on gift nifty, which van not be played by retailer.Like 2
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The equity segment will not be extended. Initially, only index derivatives are expected to be extended.Like
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stop 9 to 3.30 market and continue new timing.stock market is not for gamlingLike 1
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@Nikunj RUPAPARA buy bank nifty call 44500 380 stop loss 230.1 and target 518.5 / 549.8 intradayfLike
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volume issues. lower volatility issues may be seen.Like
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bjp government wants to u play and lose and do gambling here ..Like 1
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NSE is an autonomous organization. Does not come under the central authority.Like
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only bjp more money given and hiltler indian govt and public is gulam for indian govLike
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I what I recently heard is correct then then 1st session till 15:30 is for the same day so I guess expires and all would be till usual time and then 2nd session from 6 would be for the next dayLike 1
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Hi If what you said about the timings is true then its really really stupid, why should it be closed b/w 3:30 and 6:00 ??I mean does NSE not have the capacity to even run its servers continuously?Its utterly preposterous...........Like
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now even retail writers will lose money. you will never know when the big players will come to spook the market during the day. it has already become difficult with different expiries on different days of the week. if it is a expiry for one index then that same day is a new starting day for another.Like
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Doctors will also benefit with more income from patients suffering over-trading, stress and anxiety...Like 2
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rather more beneficial to the market operators and govt is luring the retailers to invest to fill the kitty of FII and DIILike
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for a professional it doesn't matter, as the gap downs and ups are factored in normal closing, retail may get further trapped in extended hours... it could help during Black Swan events but even that's managed by big hands as they control the news flowLike 3
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Don't know, only time and experience will tell.Like
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THANK YOU 👍😊Like 1
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You're welcome.Like
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thanksgivingLike
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Retailers will stick to the systems for more time, health will impacted moreLike 3
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If someone is trading a system, it can be automated.Like
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Nothing good for retailers ,Govt want every sector to be money generating machine.Like 4
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This won’t happen so easily with respect to any public utility or public help departments. Extend the banking hours so office employee can also avail its benifit without wasting their office time 😂Like 1
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Would this also be extended to the Equity markets or only for the F&O segments ?Like
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Thanks bro for info.Like 1
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You're welcome, Rajesh.Like
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