Do people really buy one 10 cent share?

[mattryanshares]

I see often in the course of sales where someone has bought 1 or 8 shares?? Is this right or is it just making up odd amounts???

 

[tech/a]

Re: Do people really buy 1 10cent share?

odd lots.
$500 min

 

[skyQuake]

Re: Do people really buy 1 10cent share?

Brokers crossing, algos, prop traders being bored etc.
Definite not retail players buying 1 share

 

[kevingr]

As I understand it (and I'm open to correction if I'm wrong) a lot of this activity is done by quantum trading systems. These are automatic systems which perform many small trades at very low cost. They do it for two reasons:

Firstly, because they can do it at low cost, they can accumulate a reasonable parcel over a period of time at the price they want.

Secondly, if they get a trade across for a price that is lower or higher than the current market price, depending on their position, they may trigger the crossing of a larger parcel of shares which has been put on at an "on market" price, thereby quickly gaining a good sized parcel at the price they want.

 

[pixel]

I see often in the course of sales where someone has bought 1 or 8 shares?? Is this right or is it just making up odd amounts???

Google "algorithmic trading on asx"
Computers break trade orders into small quantities to avoid spooking the market when some big orders have to be filled. Among retail Internet traders, it's also called "bot" (from Robot) trading. Nothing special; got to live with it and follow your trading plan regardless.

 

[Tyler Durden]

Google "algorithmic trading on asx"
Computers break trade orders into small quantities to avoid spooking the market when some big orders have to be filled. Among retail Internet traders, it's also called "bot" (from Robot) trading. Nothing special; got to live with it and follow your trading plan regardless.

Can prices be manipulated by the use of these computers?

 

[hangseng]

Can prices be manipulated by the use of these computers?

Can and do...often

http://www.google.com.au/#hl=en&biw...price+manipulation&spell=1&fp=dc4c36b66910039

 

[nunthewiser]

Re: Do people really buy 1 10cent share?

odd lots.
$500 min

Wrong.

as a holder of xyz i can sell a $1.00 worth as long as my remaining holding is larger than $500 worth.

different brokers different things .......

on a side note pertaining to the actual question................ yes

some ppl even buy 101 shares , or 123 shares or 5 shares or whatever they decide on at any given moment to suit whatever game they are playing......... hell i even saw once a dude that stacked the sell with whatever he had then dropped 40 bucks worth " at market" ( which was 8%cheaper than his sell price) just to queue up in smaller parcel lots throughout thin buy depths to catch whatever came along.......

gotta watch those shifty buggers ...... its a cruel cruel game this market stuff

 

[pixel]

Re: Do people really buy 1 10cent share?

some ppl even buy 101 shares , or 123 shares or 5 shares or whatever they decide on at any given moment to suit whatever game they are playing

Replace "ppl" by "'bots" or "algorithms".
However, an increasing number of online brokers allow their clients to "bundle" a dozen or more sub-orders into one daily contract note. Which may increase the occurrence of small orders or even stacks on both sides of the depth screen. Say, a share is stagnant trading in a rut between 12 and 12.5c: bid 12c, offered 12.5c; you hold a few. How can you make a quick buck?

Easy: Stack buy orders of 1000 each at 12c, sell orders at 12.5c, then let buyers and sellers take turns filling your orders. Each time a pair of your orders is filled, it's five bucks in your pocket. And don't snort contemptuously at "fve bucks each" - 'bots play that kind of game thousands of times a day, syphoning Millions into Fundies' kiddy.

 

[skc]

Re: Do people really buy 1 10cent share?

Replace "ppl" by "'bots" or "algorithms".
However, an increasing number of online brokers allow their clients to "bundle" a dozen or more sub-orders into one daily contract note. Which may increase the occurrence of small orders or even stacks on both sides of the depth screen. Say, a share is stagnant trading in a rut between 12 and 12.5c: bid 12c, offered 12.5c; you hold a few. How can you make a quick buck?

Easy: Stack buy orders of 1000 each at 12c, sell orders at 12.5c, then let buyers and sellers take turns filling your orders. Each time a pair of your orders is filled, it's five bucks in your pocket. And don't snort contemptuously at "fve bucks each" - 'bots play that kind of game thousands of times a day, syphoning Millions into Fundies' kiddy.

I have thought about doing something similar a few times but have never quite find the right stock. But wouldn't you get killed if the price flies to 14c and you just shorted a bundle at 12.5c? I guess you did say stagnant trading...

 

[pixel]

Re: Do people really buy 1 10cent share?

I have thought about doing something similar a few times but have never quite find the right stock. But wouldn't you get killed if the price flies to 14c and you just shorted a bundle at 12.5c? I guess you did say stagnant trading...

Correct, skc: I did say "stagnant trading", which is an essential condition for us small fries.
For the Big Boyz, whose 'bots do this kind of thing Millions of times, a single "flier" won't break the bank. In fact, they may have had the intention to sell a large position; rather than placing 10Million shares for sale at 12.5c, they simply keep the trade counter ticking over, skewed slightly to the upside. That means they buy a few more and sell less, thereby giving the impression somebody is buying. And once the stampede has set in, they feed their Millions into the buying momentum at increasing prices (and profits.)

That also answers the question originally posted by Tyler Durden:

Can prices be manipulated by the use of these computers?

Answer: Yes, they can. And they are.

 

[lianeisme]

Re: Do people really buy 1 10cent share?

Answer: Yes, they can. And they are.

I’m learning something new here.
Ok I’m really intrigued I have only been in blue chip for the past few years, my broker charges on average $25.00 per trade sometimes more depending on size of parcel sold. Can you tell me where I can go to learn this method, as I have seen it mentioned a few times but don’t know how you can buy and sell such small amounts and make money when the brokage is so expensive. Please don’t jump down my throat I am genuine in regards to this I really want to learn.

 

[ginar]

Re: Do people really buy 1 10cent share?

I’m learning something new here.
Ok I’m really intrigued I have only been in blue chip for the past few years, my broker charges on average $25.00 per trade sometimes more depending on size of parcel sold. Can you tell me where I can go to learn this method, as I have seen it mentioned a few times but don’t know how you can buy and sell such small amounts and make money when the brokage is so expensive. Please don’t jump down my throat I am genuine in regards to this I really want to learn.

there are a couple niche brokers out there who you can trade by amounts not by frequency . they let you do several trades a day and its all combined on one ticket for a single transaction . Amscot is one that offers this service , there are others


https://www.amscot.com.au/register/rates/online.aspx

 

[pixel]

Re: Do people really buy 1 10cent share?

I’m learning something new here.
Ok I’m really intrigued I have only been in blue chip for the past few years, my broker charges on average $25.00 per trade sometimes more depending on size of parcel sold. Can you tell me where I can go to learn this method, as I have seen it mentioned a few times but don’t know how you can buy and sell such small amounts and make money when the brokage is so expensive. Please don’t jump down my throat I am genuine in regards to this I really want to learn.

PariTrade is one: http://www.paritech.com.au/
Trader Dealer anotehr: http://www.mdsfinancial.com.au/trader-dealer.aspx
Commsec (used to?) have a branch, AOT Online, who offer it too.

 

[pixel]

I just snapped an "interesting" sequence of 'bot trades that were done on FML a few minutes ago.

 

[Tyler Durden]

If prices can be manipulated, then why not, say, manipulate CBA or Macquarie shares to 10 cents?