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sell order & sell prices.
post Posted: Oct 4 2009, 03:56 PM
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In Reply To: worf's post @ Jun 20 2006, 06:36 PM

Since this topic has been brought to the fore again (sorry, TG - I'm sure it's not intended for garage sales tongue.gif )
The Open and Closing Auction procedures have slightly changed since 2006. Not so much the procedure once the settling price has been determined, but the way the price is calculated has changed. Most data providers - e.g. I'm positive about MDS and Iress - will show a column headed "IAP" or "Indicative Average Price" while a stock is in such a Pre-Open situation. Some will also show the "surplus volume" (positive or negative, depending on whether there is an excess of buyers or sellers at the IAP).
If I am interested in getting best price for a stock that I want to sell, I simply add all bids above IAP and offers below IAP, which tells me where I need to pitch my order to be sure it's filled; if I have more to sell than the buyers' surplus, offering my position at a price below current IAP will result in IAP being changed accordingly.

I trade daily, but I am not a licensed adviser. Whether you find my ideas reasonable or not: The only person responsible for your actions is YOU.
I follow two rules: (1) There are no sacred truths. All assumptions must be critically examined. Arguments from authority are worthless. (2) Whatever is inconsistent with observed facts must be discarded or revised. We must understand the Market as it is and not confuse how it is with how we wish it to be. (inspired by Carl Sagan)
post Posted: Jun 20 2006, 06:36 PM
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QUOTE (Yurxter @ Tuesday 20/06/06 05:50pm)

thanks Yurxter for your reply & you're correct in that it was in auction (preopen) phase.

I am amazed at myself that I have never fully understood the process. Or more importantly, I have been completely wrong in my understanding of it. Somehow I had assumed from past experience that the sales are matched by volume and the highest bid gets the sell order at the sell order price.

Just too stupic that I thought this I know, lol...

I found this info that explained it to me:

""Why do I sometimes see bids higher than the asks in the morning before trading and afternoon after trading?

There are often bids higher than asks when a stock is in "pre-open". In this phase buyers and sellers can place their orders onto the market, however no trades occur until the market opens, or until it is cleared in the case of closing. Once the market does open, or is closed, the opening/closed price is determined by the weighted algorithm, determined by the buyers and sellers in the market for that particular stock. Any buyers bidding above the opening price will buy at the opening price and any sellers offering their shares below the opening price will sell at the opening price. ""

post Posted: Jun 20 2006, 05:50 PM
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In reply to: worf on Tuesday 20/06/06 06:46pm

sounds like it went through at the closing auction. works the same as the opening match out.

post Posted: Jun 20 2006, 05:46 PM
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Today I put a sell order in after close with the sell order price at 2.67 & my parcel went thru at 2.68, 1 cent higher than my sell order. It was processed at the 4.15pm clearing time. Obviously I'm happy to get more but have never had this happen before.

I would appreciate it if anyone can explain the process. .

thanks in advance


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