How does this happen?

[Caliente]

How does this happen guys?

 

[Caliente]

to clarify, look at the buy and sell sides???

 

[Yippyio]

This happens at the market open as well.

The final trade or the opening trade will be an average of the buy quantity & the sell quantity, at close or open of market.

The final trade normally settles at approx. 4.05pm

 

[happytrader]

The market stops for the public at 3.59ish but the actual closing prices are not available until 4.05 and sometimes 4.09 or later so that 'adjustments' can be made. Remember the 'professionals' close the market. If you are quick with the maths you can probably make a guess.

Cheers
Happytrader

 

[wayneL]

Here's the ASX explanation

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

Cheers

 

[markrmau]

The market stops for the public at 3.59ish but the actual closing prices are not available until 4.05 and sometimes 4.09 or later so that 'adjustments' can be made. Remember the 'professionals' close the market. If you are quick with the maths you can probably make a guess.

I've seen this misconception before. Anyone can participate in the open/close bid, not just professionals. Just stick in a bid. See Wayne's post for explanation of the calculation. [I have seen restrictions on participating in open/close auction when using CFD's, but that is another story.]

 

[happytrader]

I've seen this misconception before. Anyone can participate in the open/close bid, not just professionals. Just stick in a bid. See Wayne's post for explanation of the calculation. [I have seen restrictions on participating in open/close auction when using CFD's, but that is another story.]

Hi Markmau

Yes Wayne the ASX explains it very well.

My experience is with banks and some blue chips. I doubt very much whether most people could put in bids and offers for 200,000 lots or so of say $40.00 bank stocks in the closing minutes. How do you know why that lot size was choosen and that time to do some buying or selling? You only have to know and understand a system to work it any way you want with your own focus in mind. I stand by my words about the professionals closing the market and being quick with the maths. Who has'nt had the experience of seeing their bank stock up say 20c at 3.59ish and then close down 20c for example? f you are an optiontrader it might come in handy for a quick entry or exit sometime.

Cheers
Happytrader

 

[mit]

Some software (Comsec professional and Netquote) will calculate the final price for you. I think it is fun to watch the movements. Now that I have broadband, if I am buying/selling the open/close I might amend my order a couple of times.

MIT

 

[Caliente]

cool, that ASX article explains it well. Cheers.

 

[canny]

If you have software with live data (far more accurate than the table you posted) - it will show a column called IAP, which is the 'match out price' giving you what theopen or close is going to be at that given moment.
IAP = Indicative Auction Price

If you are going to be day trader, you can't survive without this live data.
Fine as a longer term investor with the screen you have.