Company stock
ROBINHOOD MARKETS
+24.17%
closure:0
opening:13.19
High:16.49
low:13.15
cycle:—
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(HOOD), which has developed a securities trading app, is currently bouncing up Wall Street by no less than 25% to a market value of $ 13.3 billion with its announcement that it will extend its trading hours by an additional 4 hours a day.
This is not related to the normal trading hours on Wall Street, needless to say, but of course there is the trading before the opening and the one after the closing, as well as financial instruments in which trading is not limited to these hours. If earlier Robinhood allowed trading from 9 a.m. to 6 p.m., then it will now be possible to do so from 7 a.m. to 8 p.m.
It will be recalled that the company does not charge trading fees. The economic model is built on maximizing users’ commands and the changes they make to their portfolio. Robinhood itself is only a broker, it sells the trading orders to market makers, they close the final deal and sweep into their pockets the gap (arbitrage) between the price at which the end user closes the deal and the price when it really closes. It is the mass that creates for them the essential profit. This model is called Order Flow.
Another 4 hours a day means for Robinhood more orders to sell, which will increase its top line. Therefore, trading volume is one of the interesting indicators in the company reports. Although it is affected by the prices of securities – it is also possible to estimate the volume of investor movements from it.
“Our clients often tell us that they work or are busy during normal trading hours, which limits their ability to invest according to their schedule or to evaluate and respond to important market reports,” Robinhood wrote in a blog post.
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