About being the first person to buy stock after it re-opens

[Davidboy81]

Good evening everybody,

I need to ask a question, probably a stupid question but I'd love to find the answer to it. I've attached an image to show you what I mean.

This morning at 10:35 AM(20 Oct 2009), ASX stock RXM made an announcement, so it was temporarily unavailable for a few minutes to trade, perfectly normal right?

Then the amazing thing happened.

When it reopens again at 10:45, I noticed that some people were able to buy it straight away on the spot at 10:45:00 on the dot, not even half a second delay. How did they do this??? I'm sure if I refresh the page over and over again trying to place the order I would inevitably delay by 2 or 3 or even more seconds or so. But often this small delay makes a big difference? I've searched all over Google for an answer but to no avail. Can you gurus help me out here please?

I'm thinking, there's gotta be a tool they use to help them get in front of everybody else, right?

If anybody could give me any information at all I would appreciate it very very much. Thank you. Attached is a picture to show you what I mean.

 

[joslad]

Re: About being the first person to buy stock after it re-opens...

Following an announcement by the company, the stock goes into pre-open mode.

No trading takes place for a set time. This is the same process that happens at the beginning and end of the asx trading session each day,

take a look at:

http://www.asx.com.au/resources/education/basics/open_Close.htm

 

[Davidboy81]

Thanks Joslad,

I've read the article. But I dont think it answered my question.

My question, simply put, is 'how do I place an "at market" order when the stock is at a pre-open mode so as soon as it re-opens I can buy the shares I want before everyone else does?' Juts like these people have in the picture I've atatched.

 

[nunthewiser]

Thanks Joslad,

I've read the article. But I dont think it answered my question.

My question, simply put, is 'how do I place an "at market" order when the stock is at a pre-open mode so as soon as it re-opens I can buy the shares I want before everyone else does?' Juts like these people have in the picture I've atatched.

If you had a live trader program ( iress , paritech pulse etc etc ).you would see the VWAP as the buys and sells appear in the pre open . Then you can adjust your bid to match the vwap so you are able to buy at that stated price the moment it opens

As you are using a basic manual refresh system you have no hope of catching the second by second movements and action

 

[cuttlefish]

see here a thread called: "thread 1000,000 about the pre-open:"

https://www.aussiestockforums.com/forums/showthread.php?t=11619

 

[joslad]

Thanks Joslad,

My question, simply put, is 'how do I place an "at market" order when the stock is at a pre-open mode so as soon as it re-opens I can buy the shares I want before everyone else does?' Juts like these people have in the picture I've atatched.

Those four trades, that traded at 10:45:00, would have met the 'match price' when trading re-opened after the pre-open auction. I doubt that you can place an 'at market' order in the manner you describe.

In the seconds before the the stock re-opens, the 'match price' would be updating continuously as orders are placed into the asx. You can adjust your order accordingly but it can be hard to time it so you get in at the match price which is constantly changing.

 

[Wysiwyg]

If he puts a "limit order" in above the highest bid shown in the bids column then it will go at the open. Can`t buy "at market" if the market isn`t open.

My question, simply put, is 'how do I place an "at market" order when the stock is at a pre-open mode so as soon as it re-opens I can buy the shares I want before everyone else does?' Juts like these people have in the picture I've atatched.

 

[marknz88]

If he puts a "limit order" in above the highest bid shown in the bids column then it will go at the open. Can`t buy "at market" if the market isn`t open.

What this man said.

Thats why during pre-open you normally see several high bids and low asks above the previous days closing price (on a normal markets day)...these people enter these bids/asks to make sure they are executed at what ever opening price is matched via the antilogarithm on the asx site

 

[Wysiwyg]

...these people enter these bids/asks to make sure they are executed at what ever opening price is matched via the antilogarithm on the asx site

Yes to be precise the limit order only has to be above (for buying) or below (for selling) the "indicative" (antilogarithm, match up) opening price to guarantee a fill. I don`t think he can see the indicative opening price so I suggested an order above all to be sure of a fill.

 

[skyQuake]

On the subject of matching orders, If a stock is bid 10 with volume 1000 and ask 9 with volume 1500 it'll match at 9. What if volume is identical? eg. bid 10 vol 1000 ask 9 vol 1000; does it match at the midpoint?

 

[skc]

On the subject of matching orders, If a stock is bid 10 with volume 1000 and ask 9 with volume 1500 it'll match at 9. What if volume is identical? eg. bid 10 vol 1000 ask 9 vol 1000; does it match at the midpoint?

That's a great question and I've always wondered about that as well.

I guess the real answer is that the bid will be pulled in the last minute and re-entered at volume of 999 to get it cheaper, while at the same time the ask will do the same thing...

Oh, back to where we started.

 

[Wysiwyg]

On the subject of matching orders, If a stock is bid 10 with volume 1000 and ask 9 with volume 1500 it'll match at 9. What if volume is identical? eg. bid 10 vol 1000 ask 9 vol 1000; does it match at the midpoint?

Meet you half way. I.e. 9.5.

 

[skyQuake]

How about when its impractical to do so? 10c bid 10.5c ask
(min price step = 0.5c)

 

[jayinoz]

On the subject of matching orders, If a stock is bid 10 with volume 1000 and ask 9 with volume 1500 it'll match at 9. What if volume is identical? eg. bid 10 vol 1000 ask 9 vol 1000; does it match at the midpoint?

A broker from Bell Direct told that in this instance it will then comes down to the time at which the order was submitted. And the earliest order would get the better deal....BUT then he changed his mind and went off to ask a Manager and told me the ASK price would be exercised being $9 or 9c or whatever.