Why are computers allowed to make trades in a stock market regime that's regulated to be operated by humans?
This is my first question and I'm very unexperienced in the field of stock trading so please be gentle.
Looking at a stock price chart (TSLA) I can see there is a so called "after market" in which trading is not possible but where the price does fluctuate. I'm assuming this is based on the fact that there's still the possibility for orders to be created in some form.
It seems to me that the "closing of stock markets"-mechanism introduces the abilities for unhealthy competition practices.
Questions like these arise (my actual question is #3 , however the answers on the previous questions feed into that):
Why does the stock price fluctuate when the market is closed?
Why do stock markets close every day? (other answer)
Why are computers allowed to make trades?
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Why are computers allowed to make trades in a stock market regime that's regulated to be operated by humans?
Where does it say that people can't use computers to trade?
Looking at a stock price chart (TSLA) I can see there is a so called "after market" in which trading is not possible but where the price does fluctuate.
"Stock price fluctuate when the market is closed" because trading occurs in the pre and post market. Some brokers require that you have approval to trade in those sessions. Some brokers do not offer after hours trading.
Why do stock markets close every day?
Because them's the rules made by the people who make the rules.
Computers don't trade, because they don't own money. They are being programmed to execute trades for a person or company.
Regarding 'after hours trading': There is no difference in who trades 'after hours' versus 'within hours' - you too can sign up with a broker to trade 'after hours'. Maybe not your broker, because he doesn't offer it, so try another one.
Stock Exchanges are companies, and they can close if they want, so they have 'hours'. Same as your supermarket.
In other words, maybe your supermarket closes at 8 pm, but Walmart is open till midnight, so stuff still gets sold.
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