15 min Closing Auctions

[bullmarket]

It's like watching paint dry with this 15 min closing auction nowadays.

I suppose the upside is that at 4:00 I can go make a cuppa, take the dog for a walk around the block and still be back in time to watch the close

 

[rozella]

I totally agree bullmarket, as far as the average small to medium trader goes, they can't do anything meaningful until the last 30 to 60 seconds anyway. A good percentage of my trades are in the closing matchout.

Well I don't have a dog, but I do have a cuppa whilst I assess the situation.

 

[Bobby]

These after 4pm deals ?, are they broker to broker or overseas trades or intra broker trades ?.

Anyone know ?.
Bob.

 

[rozella]

G'day Bobby,

Any of us are eligible to join in provided you use an online broker, or even if you use a full service broker for that matter, however, it is easier if you do it yourself.

 

[Bobby]

G'day Bobby,

Any of us are eligible to join in provided you use an online broker, or even if you use a full service broker for that matter, however, it is easier if you do it yourself.

Hullo Rozella,
I do use an online broker, but I'm not sure of your explanation to my question ?.

Regards Bob

 

[finnsk]

this is probably the wrong thread, but what happens in the 15 min before opening?
Is that the same it happens in the last 30 - 60 secs?

Finnsk

 

[bullmarket]

Hi Bobby, finnsk

I'll try to explain what happens before the market opens at 10am but the same process is followed during the closing auction (4:00-4:15pm) and before ANY pre-open auction.....ie...usually about 10 mins before a stock resumes after a trading halt for any reason.

The stock market goes into pre-open from 7am during which time anybody can put in whatever bids/offers they like (auction). During pre-open SEATS (Stock Exchange Automated Trading System) then goes thru a 4 stage algorithm to compute the IAP (Indicative Auction Price) based on the mkt depth whenever it changes. The IAP represents what the opening price would be at that particular time based on the current market depth if the stock opened for trading there and then.

At 10am stocks begin trading in alphabetical order. The market is fully open by about 10:08am. When the stock opens for trading, all orders with bids above the IAP and all orders with offers below the IAP are executed at the IAP. The IAP when the stock actually opens becomes the quoted opening price. During pre-open people put in bids above the IAP and offers below the IAP to ensure their orders are executed on opening.

At 4:00pm normal trading stops but again anybody can continue to put in whatever bids/offers they like until 4:15pm, just like in the morning preopen, but the orders aren't executed until 4:15pm. During the 15 mins closing auction SEATS again computes the IAP as above each time the market depth changes. At 4:15pm, for each stock all orders with bids above the IAP and all orders with offers below the IAP are executed at the IAP. In this case the IAP will be the quoted closing price.

I hope this makes sense and helps

cheers

bullmarket

 

[markrmau]

In addition to previous comments, please read:

http://www.asx.com.au/investor/education/basics/trading_hours.htm

and

http://www.asx.com.au/investor/education/basics/price_calculations.htm

The only people who may have difficulty participating in open / close autions are those who use marketmaker CFDs.

 

[Bobby]

Thanks for that Bullmarket & Markrmau now got it !.

Regards
Bob.

 

[finnsk]

Thanks for your answers much appreciated.

 

[bullmarket]

No problem finnsk, bobby

markrmau's second link explains how the IAP (eventual opening/closing prices) is calculated.

cheers

bullmarket

 

[bullmarket]

tick tock tick tock tick tock tick tock tick tock tick tock tick tock tick tock

might go have that cuppa and take the dog for a walk round the block.....

see you in 15 mins

 

[David123]

lol well done qball, u hit 4pm right on practice hey ?

cheers

 

[bullmarket]

yes David looks like I blinked at just the right time when I hit the submit button

cheers

bullmarket

 

[Happy]

15 minutes I don’t know but a number of times 5 wasn’t enough for me, making me one of not too many who actually benefited from change.

 

[bullmarket]

In case anyone is wondering why the closing price auction period was extended to 4:15pm, the reason is explained on this ASX web page

cheers

bullmarket

 

[David123]

Bullmarket, so you didnt mean to hit 4pm?, LOL

Cheers

 

[bullmarket]

david - I did, but the tricky bit is syncronizing your blinking to the clock

 

[bullmarket]

got time to make a cuppa and come back to get the closing prices

 

[bullmarket]

taking rambo for a walk round the block during the 15 mins closing auction - back for closing prices