Why We Have Half Days

With the Thanksgiving holiday falling on a Thursday, traders are left with full stomachs and the prospect that they can take Friday off. Given that a four-day weekend is so uncommon for a trader, many do pass up on the half-day of trading. This begs the question, “Why even open exchanges at all?” While it seems silly to open exchanges for four hours on a day when most of the floor (and off floor traders) do not even show up, there is one major reason—liquidity. There is a reason that a four-day weekend is so uncommon to a trader and that is the prospect of holding positions for four consecutive days without the ability to sell/cover those positions. In other words, without liquidity, or at least the prospect of it, general trading would become extremely erratic and volatile the week before. While it is true that most large money managers take the entire week of Thanksgiving off, their minions are there to execute traders if so needed. While electronic trading, mobile internet connections, and computer technology has helped extremely with the matter, if the exchange is not open, you are left out in the dry. So, if you don't want to trade, or don't have to, don't. But, be glad that you have the opportunity to