# Market depth during pre-open



## lemontree (22 June 2010)

So my question relates to the market depth during Pre-Open in particular and indicative prices. So lets take the bottom market depth for example, assuming current phase is Pre-Open:




1/ Someone places a bid at 40.98 for 25 348
2/ Someone places a sell at 39.00 for 9 665

Now i understand the bid at 40.98 is in excess of all sell orders so it'll buy up to a quantity of 25 348 for any share under the price of 40.98. So it'll buy up to the sell order at 40.03 and eat up some of that quantity but not all. Leaving the indicative price at 40.03.

So my question is: Are all the previous shares bought at 39, 40.01 and 40.02. Or are they all bought at the indicative price of 40.03, where the extravagant buy order quantity stops.

My current understanding is that the latter occurs, but i'm seeking clarification. Thanks!


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## Timmy (22 June 2010)

Check out this thread lemontree:

*Thread #1,000,000 about the preopen!*
https://www.aussiestockforums.com/forums/showthread.php?t=11619


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## pixel (22 June 2010)

lemontree said:


> So my question relates to the market depth during Pre-Open in particular and indicative prices. So lets take the bottom market depth for example, assuming current phase is Pre-Open:
> 
> View attachment 37606
> 
> ...




If that's the state of affairs at the second the pre-open is lifted and bids and offers are matched out, then they're all bought at the price of 40.03, where the excess buy order quantity stops.


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