Stocks are about to trade through noon, investors are not worried about missing the opportunity?

(NLDO) – If the Vietnamese stock market allows investors to trade through noon, T0 will bring both opportunities and risks...

Although the VN-Index dropped to 1,630 points at the end of the week, it still had 2 consecutive weeks of increases and is at its historical peak. Strong cash flow into the stock market, attracting the attention of investors, with liquidity value per session reaching 40,000 - 60,000 billion VND, with a record liquidity session of 76,000 billion VND on the HOSE floor alone.

Securities are becoming an investment channel attracting cash flow. Recently, investors are interested in the information that after the KRX system is put into operation, the management agency will study the introduction of a number of new trading products.

Investors are excited

According to the reporter of Nguoi Lao Dong Newspaper, on forums, associations, and stock investment groups, many investors expressed their excitement about being able to trade through noon or extend the morning and afternoon hours; sell stocks on the way home - sell stocks right after the purchase order is matched; trade within the day (T0)...

Mr. Vo Van Huy, Head of Senior Client Department, DNSE Securities Company, analyzed that currently, the Vietnamese stock market has a 1.5 hour lunch break. This causes the market to be interrupted and may miss fluctuations from the international market. If trading is implemented through lunch, the trading time will be continuously extended (from 9:00 to 15:00), similar to major markets such as the US or Europe.

The stock market has been continuously rising recently, attracting cash flow from investors.

Continuous trading helps to promptly reflect economic information and business news, reducing interruptions that lead to strong fluctuations when reopening. This factor will attract more foreign investors, increase market liquidity, and support the upgrade.

"Many markets such as the US or Hong Kong (China) have applied continuous trading, helping to increase liquidity sharply. On the contrary, the risk will be increasing pressure on the system and people. Securities companies need to upgrade infrastructure to handle larger trading volumes, avoiding order congestion. Employees and investors may get tired due to continuous work, leading to mistakes. Not to mention the KRX system may face technical risks that are not completely stable" - Mr. Vo Van Huy analyzed.

Mr. Tran Anh Giau, Sales Director of a securities company, said that midday and T0 trading can bring both advantages and risks to individual and institutional investors. Midday trading helps increase liquidity in the market, allowing investors to easily buy and sell stocks without waiting until the end of the day.

"Investors can take advantage of intraday price fluctuations to immediately close profits, maximizing profits. T0 trading allows investors to quickly react to news or events affecting the market, which is especially beneficial in volatile markets. The T0 mechanism and continuous trading are common practices in many developed markets, attracting foreign capital flows," said Mr. Tran Anh Giau.

Beware of the risks of continuous trading

According to many securities companies, moving towards the ability to trade through noon and T0 products are notable steps to increase competitiveness, liquidity and integration for the Vietnamese stock market.

Mr. Nguyen Thanh Lam, Director of Analysis, Retail Banking, Maybank Securities Company, said that the US and most European countries have been applying midday trading for quite a long time. South Korea has started trading midday since the end of 2021 to increase competitiveness, while Japan has a lunch break but is recently under pressure to change to increase competitiveness. If Vietnam chooses the midday trading solution, it will be a radical decision, increasing the level of competition and further improving market liquidity.

When trading through noon, individual investors can be stressed because they have to continuously monitor the market, while organizations are under pressure from the system, risk management is more complicated...

"With T0, if implemented, it will be a product that allows intraday trading with the same stock code that has been traded. This is not an adjustment to the payment cycle but an additional product that helps investors have more options in trading, which has been implemented in the US, Europe, Japan, Korea, Singapore, Malaysia, etc. Having a T0 product soon is a suitable step for the current scale of Vietnam's securities market," said Mr. Nguyen Thanh Lam.

However, some experts believe that day trading often comes with high price volatility, which can lead to rapid losses without a reasonable risk management strategy. Continuous short-term trading can create great psychological pressure, making investors susceptible to irrational emotional decisions. In addition, some organizations and large investors can take advantage of T0 to manipulate prices, "pushing up - pushing down" during the day...

Source: https://nld.com.vn/chung-khoan-sap-giao-dich-xuyen-trua-nha-dau-tu-khong-lo-bo-lo-co-hoi-19625081623320401.htm