Business

Why are stock markets closed on weekends, holidays?

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Liquidity

Markets need time to ensure that trading can occur smoothly and efficiently. Closing on weekends allows for better management of liquidity.

Image credits: Freepik

Operational Hours

Most trading systems and exchanges have specific operational hours, and weekends provide necessary downtime for maintenance and upgrades.

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Global Coordination

Stock markets around the world often align their schedules, and many markets are closed on weekends, making it easier to manage international trading activities.

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Regulatory Standards

Regulations often require markets to have set operating hours to ensure transparency and stability.

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Reduced Trading Activity

Historically, weekends see less trading activity, and keeping the markets open would not justify the costs and operational needs.

Image credits: freepik

Stability and efficiency

Overall, these closures help maintain a stable and efficient trading environment.

Image credits: Getty
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