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What is the impact of after-hours trading on VLTC price volatility?

avatarBill PhamDec 28, 2021 · 3 years ago3 answers

How does after-hours trading affect the volatility of VLTC prices in the cryptocurrency market?

What is the impact of after-hours trading on VLTC price volatility?

3 answers

  • avatarDec 28, 2021 · 3 years ago
    After-hours trading can have a significant impact on the volatility of VLTC prices. During regular trading hours, there tends to be more liquidity and trading activity, which helps to stabilize prices. However, after-hours trading is typically characterized by lower trading volumes and less liquidity, which can lead to increased price volatility. This is especially true for smaller cryptocurrencies like VLTC, as they are more susceptible to price manipulation and sudden price swings during low-volume trading periods. Therefore, after-hours trading can result in higher price volatility for VLTC.
  • avatarDec 28, 2021 · 3 years ago
    The impact of after-hours trading on VLTC price volatility can be quite significant. When the market is closed, there are fewer participants actively trading VLTC, which can lead to wider bid-ask spreads and increased price volatility. Additionally, news and events that occur outside of regular trading hours can have a delayed impact on VLTC prices, causing sudden price movements when the market opens. Therefore, traders and investors should be aware of the potential for increased volatility during after-hours trading and adjust their strategies accordingly.
  • avatarDec 28, 2021 · 3 years ago
    According to a study conducted by BYDFi, after-hours trading has been found to have a moderate impact on the volatility of VLTC prices. The study analyzed trading data from multiple exchanges and found that after-hours trading tends to have slightly higher price volatility compared to regular trading hours. However, the impact is not as significant as some might expect. It's important to note that this study focused specifically on VLTC and may not be applicable to all cryptocurrencies. Traders should consider the specific characteristics of VLTC and the overall market conditions when assessing the impact of after-hours trading on price volatility.