Market Timing - When and where to trade correctly
Trading-free days are sometimes nice for me, but also boring. As I live in Germany, I can only watch international trading from afar since 2nd April. Conversely, the Americans watch me when it is Martin Luther King Day or similar holidays in the USA. The principle applies not only on holidays abroad, but also to trading hours in different time zones.
Example: If I want to buy a US stock, I wait until 15:30 Central European Time, because that is when the US stock exchanges open.
The fact is that companies in the countries where they are based also have their reference stock exchange there, so that the greatest liquidity can be traded on the respective stock exchanges. The high concentrated liquidity ensures that the spread between buying and selling is lower than on illiquid exchanges and thus forms a micro-level of market timing. This applies to shares, derivatives, certificates, etc.
Special features such as knock-out thresholds offer special conditions. You should ask your issuer about these.
The exception proves the rule
Exceptions are commodities and bitcoin, which can be traded 24 hours a day all over the world. In the case of knock-out certificates, exceeding the knock-out threshold can affect you overnight.
Feels good to post again, sincerly.
Litshit69
