What is the delayed opening?

delayed holes are short -term periods when the opening of the trading day is postponed. Delayed opening can take just a few minutes or continue for several hours. In general, there are some attenuating circumstances that cause it to be delayed to delay trading for a short period of time.

Although there are a number of situations that could lead to delayed opening, there are three common reasons to permit temporary postponement at the beginning of the business day. First, the delay in opening the stock exchange for active trading may be due to the need to restore a certain degree of balance to the market, which has closed with a big difference between offer and required the previous business day. If this is the case, the exchange gives a chance to find out whether the factors that caused the disparity of the previous day have retreated or at least decreased. The idea behind the delayed opening is to assess the situation and be prepared corresponding to the reactant of the stock exchange is open for trading.

Another common reason for delayed opening is related to key notifications that have the potential to create a lot of confusion on the market floor. The delay of opening provides more time to investors to fully assess the announcement and determination of the impact, if at all, will be felt with their current shares. This is often the case where the main corporation announces a significant change in product lines or the company's main officers or in the merger notice. This gives investors a little more time to spend the announcement and minimize the chances of rash for shopping and sale.

Exchange may decide to release delayed opening due to world events that probably have a major impact on business activity per day. Events such as natural disasters, military coups and the results of political elections can be so deep that one or more major markets are expected to influence significantly. As in the case of notification of corporate changes, it can open upThe stock exchanges are delayed as a means that allows investors to investigate in more detail the impact of the event than to jump on the conclusions and possibly accept the unwise decisions on trades on this day.

While delayed opening is often considered inconvenience, the fact is that the reasonable use of the delayed opening is in the best interest not only of the stock exchange, but also investors who trade on the stock exchange. In addition, by providing a small time for all parties that consider the current circumstances before the commencement of trading, the chances of uninformed shop decisions are minimized and therefore have less potential to undermine the market.