Vantage Flags Risks in 24/7 Trading

Vantage Markets, a retail CFD broker, is raising concerns about the shift toward 24/7 trading in traditional financial markets. In a recent analysis with macroeconomist Fu Peng, the broker examined the implications of extended trading hours on liquidity, price discovery, execution, and risk management, particularly during periods of low participation.

The move toward always-on markets is gaining momentum. CME Group reported nearly 15,000 one-ounce gold futures contracts, worth about $60 million, traded during the first weekend of its 24/7 schedule. The London Stock Exchange has announced plans for LSE 24, a 24/5 venue for digital and algorithmic trading. The World Federation of Exchanges, however, cautioned that 24/7 trading is "not inevitable nor universally desirable," suggesting that shorter extended-hour models may be more appropriate before continuous trading becomes the norm.

Fu Peng noted that 24/7 trading is an infrastructure issue, adding that financial assets can operate within such a framework once systems support timely clearing and settlement. Crypto markets were early adopters of continuous trading, and Fu believes advances in computing, blockchain, and post-trade systems could extend this model to assets like gold, equities, commodities, and forex.

But liquidity remains a core concern. Finance Magnates reported that extended-hours trading can lead to wider spreads and fewer available quotes when activity is low, increasing execution risks for traders. Vantage itself has embraced extended hours, launching XAUUSD247, a gold CFD available seven days a week, including weekends. The product is subject to scheduled maintenance and regional availability, with spreads, financing charges, and leverage varying according to trading conditions.

Longer trading hours do not automatically eliminate market risks. Weekend trading may reduce some price discontinuities by allowing markets to respond closer to event timing, but thin participation can still result in sharp price moves and limited execution. Vantage also offers OPENAIUSD and ANTHUSD CFDs, which rely on private-market valuation data for OpenAI and Anthropic. These products highlight the importance of reliable reference pricing, disclosure, liquidity, and risk controls where conventional public-market access is unavailable.

"Opportunity is also risk, and risk is also opportunity; the two move together," Fu concluded.

For retail traders, the expansion of trading hours brings both convenience and new dangers. The watchdog perspective emphasizes that while extended hours may seem attractive, they do not guarantee tighter spreads or better prices. Traders should be aware that liquidity can evaporate during off-peak times, and execution quality may vary widely. Vantage's cautious framing serves as a reminder that brokers and exchanges must prioritize robust risk management and transparent disclosure as they push toward always-on markets.

This is information, not investment advice.