T+0 means you can sell on the same day you buy it; the total circulation of the stock is too large. If T+0 is used, the market will be too volatile and the risk will be too great to control.

Advantages of T+0:

First of all, T+0 trading can reduce the liquidity risk of warrant investors. Since my country's A-share market uses a T+1 trading system for stock trading, it means that stocks bought on that day can only be sold on the next trading day. When an investor buys a stock and realizes that he looked in the wrong direction, he cannot sell the stock on the same day. This is not the case with warrants. T+0 trading allows investors to enter or exit the market conveniently. The trend of warrants has a strong linkage with changes in the price of the underlying stock. When the direction of the underlying stock is wrong, investors can stop the loss in time; and when the direction of the underlying stock is correct, investors can use the leverage of the warrant to Get higher returns and take profits promptly. From this perspective, investing in warrants has greater advantages than investing in underlying stocks.

Risks of T+0:

First, the T+0 trading system can easily cause the price of warrants to fluctuate greatly, exacerbating investors' risks. Frequent buying and selling can easily cause violent fluctuations in warrant prices. Judging from the operation of my country's warrant market, the fluctuations in warrant prices are generally greater than those of the underlying stocks. From this perspective, the risks of warrants and the requirements for investors' short-term operation capabilities are higher than those of stocks. Generally speaking, if the trends of the market and the underlying stock are relatively stable on that day, the warrant price band will be easier to grasp; on the contrary, if the market and the underlying stock fluctuate strongly, the fluctuation range of the warrant will be doubled, leading to sharp declines and sharp increases. In this case, the top and bottom of the band will also become very difficult to grasp, and blind buying is likely to get trapped in it. There are also some investors who lack sufficient short-term trading skills and blindly chase the rise and fall multiple times in a day, which may cause large losses.

Second, T+0 transactions increase investors’ transaction costs. Because the T+0 trading system makes it possible for the same fund to enter and exit frequently within a day, although this method can improve the efficiency of capital use, repeated entry and exit also increases the transaction costs of investors. Some investors find that although they earn a certain price difference by buying low and selling high, after deducting transaction costs, they often cannot make money or even lose money.