The Clap Robinhood (NASDAQ: HOOD) will begin extending the trading day for its users by four hours, starting from 7:00 AM to 8:00 PM.
Backstory Traditional market hours run from 9:30 AM to 4:00 PM & Robinhood already offered extended trading from 9:00 AM & ending at 6:00 PM.
However, the core users of Robinhood are retail investors who have their own 9-5 jobs. “Our customers often tell us they’re working or preoccupied during regular market hours, limiting their ability to invest on their own schedule or evaluate and react to important market news.”
Why this matters Robinhood wants to become a 24-hour equities trading platform. However, extended trading comes with risks for users, as opposed to traditional trading hours. Risks include lower liquidity (opportunities to buy & sell), & potentially higher volatility.