A question I haven't seen anyone answer properly, and I'd like someone to.
It's Saturday. US markets are shut. The underlying share cannot be bought, sold, hedged or borrowed until Monday. And yet a bStock order book is live and I can get filled.
So who is on the other side of my trade?
Whoever it is has taken a position they can't offset in the underlying for another 40 hours. That's not a free trade for them. Somebody is carrying real weekend risk so my order can fill, and that cost doesn't come out of nowhere — it shows up as a wider spread, or as the price drifting further from where the share last closed.
Which leads to the practical bit. When Binance reports that bStocks make up 58% of equity-linked volume outside US market hours, and a single weekend did $2B, that's a genuinely large amount of risk being warehoused by someone. Either the market-making is far more sophisticated than the retail conversation assumes, or the weekend price is doing more work than people realise.
I don't know which. I'd rather say that than invent an answer.
What I do know is the behavioural conclusion is the same either way: your weekend fill on $TSLAB is not the Monday open, and treating it as though it is will cost you eventually. Size accordingly.
If anyone actually understands the off-hours liquidity structure here, I want to read it.
Regional updates via @BinanceCIS
#bStocksCIS
It's Saturday. US markets are shut. The underlying share cannot be bought, sold, hedged or borrowed until Monday. And yet a bStock order book is live and I can get filled.
So who is on the other side of my trade?
Whoever it is has taken a position they can't offset in the underlying for another 40 hours. That's not a free trade for them. Somebody is carrying real weekend risk so my order can fill, and that cost doesn't come out of nowhere — it shows up as a wider spread, or as the price drifting further from where the share last closed.
Which leads to the practical bit. When Binance reports that bStocks make up 58% of equity-linked volume outside US market hours, and a single weekend did $2B, that's a genuinely large amount of risk being warehoused by someone. Either the market-making is far more sophisticated than the retail conversation assumes, or the weekend price is doing more work than people realise.
I don't know which. I'd rather say that than invent an answer.
What I do know is the behavioural conclusion is the same either way: your weekend fill on $TSLAB is not the Monday open, and treating it as though it is will cost you eventually. Size accordingly.
If anyone actually understands the off-hours liquidity structure here, I want to read it.
Regional updates via @BinanceCIS
#bStocksCIS