Is it possible to make use of stock chart information from different time zones?
For example, if I am trading a SP500 ETF on the NYSE, the stock exchange opens at 3:30pm CET. Due to the time shift, the stock exchanges in the EU open at 9am CET, meaning I can already gather chart information from SP500 ETFs that are traded here.
Real life example: The SP500 ETF (even though it's the one traded on an EU stock exchange) gains a lot of value again after the corona virus crash. Is it practically possible to use this information to my advantage by immediately buying shares at the NYSE when it opens later? I know that technically the charts aren't connected with each other as each stock exchange trades it's own shares but in reality they are still correlating.
To be fair, due to the duration of an order I think it wouldn't be possible to take advantage of this small marge, but what about big banks with higher volume and high speed trading?
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Real life example: The SP500 ETF (even though it's the one traded on an EU stock exchange) gains a lot of value again after the corona virus crash. Is it practically possible to use this information to my advantage by immediately buying shares at the NYSE when it opens later?
No. The simple reason why is that even if you buy immediately when the market opens, that's still too late.
As an example, imagine that there's a single ETF which trades both in the United States (from 9:30 am to 4:00 pm US Eastern time) and in Great Britain (from 4:30 am to 11:00 am US Eastern time).
Now let's imagine that it's 4:30 am Eastern, and the ETF begins trading at . However, the price of the ETF increases over the course of the day, so that by 9:25 am Eastern, the price of the ETF is 0.
Can you take advantage of this by buying shares of the ETF in the United States immediately upon open? No, because when it starts trading in the United States, it will start trading at about 0, not at . You'll be paying 0 for shares worth 0, which is, of course, a profit of [CO].
Maybe you're thinking that when the market opens, the opening price is the same as the previous day's closing price. This is not the case. The market won't open at and then immediately rise to 0; it will simply open at 0.
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