Unlike Western exchanges, many Asian markets like Tokyo and Shanghai close for lunch. Don't get your orders stuck in limbo.
Traders accustomed to Western markets (New York, London, Frankfurt) are used to continuous trading. The NYSE runs from 9:30 to 4:00 without pause. Algorithms and floor traders eat at their desks.
However, Asia retains a traditional "Lunch Break" structure that can trap unwary international traders.
If you place a "Market Order" just as the clock hits 11:30 AM in Tokyo, your order might sit in limbo for an hour. Worse, news continues to break during lunch. If an economic report comes out at 12:00 PM, the market will gap significantly when it reopens at 12:30 PM.
Strategy Tip: Avoid opening new short-term positions in the 15 minutes leading up to the lunch break. Liquidity often thins out as local traders square up their positions to go eat, leading to erratic spreads.