Is there any way to calculate the first price at the market open?

[bathuu]

Hi guys,

I'm just trying figure out the price of my order if I give it on the pre-open. I have an example here:

Indicative Price before opening is $0.02
BUY | SELL
0.023 100000 | 0.018 100000
0.022 500000 | 0.019 200000
0.021 1000000 | 0.020 2500000
0.020 3000000 | 0.019 2000000
....etc.

When indicative price is $0.02 and if my order is $0.023 100000, is there any chance to get that sell side's $0.018 100000 for $0.018 or maybe at $0.019 price? How these orders are executed if there are variations from indicative price on the buy and sell sides? How orders gets ranked? I assume I must have priority over other buy orders if my bid is higher. And does this guarantee me to get sell side's cheapest offer for my bid? At how much price will this seller side's 0.018 100000 be executed when market opens? Can someone enlighten me on this please?

 

[WRONG'UN]

Re: Is there anyway to assume the price of order to be exectued at opening market?

It is my understanding that as it stands there are 4.6m bid at 0.020 or more, and 2.8m asked at 0.020 or less. So 2.8m would change hands at 0.020, and we would be left with 1.4m bid and what's next on the ask side, 2.0m at 0.021 (you have a typo on the ask side - the bottom 0.019 should be 0.021)

If you had bid 0.020, you may or may not have got them, depending on where you were in the 0.020 queue.

 

[bathuu]

Re: Is there anyway to assume the price of order to be exectued at opening market?

Hi thanks for the reply WRONG'UN,
(made a typo, that should be 0.021)

I basically got the idea. So the bids higher than and asks lower than 0.02 are executed at 0.02? I am just curious now how indicative price is determined? Is it the price where the most number of bid and ask orders are meet?

Cheers

 

[Country Lad]

Re: Is there anyway to assume the price of order to be exectued at opening market?

Play around with these. The first is the expanded view showing the actual orders at each level and you can see that some of the sell orders will be filled and some will miss out. It can be a moving feast of course when there are a few people jostling for position to either buy or sell.

The second is the normal view which is a summary of the orders.

Cheers
CL

 

[bathuu]

Long holiday. Time to get back to business now.

Hi CL,
Detailed depth seems rather complicated than what I see in my commsec. One more thing I am also wondering is that does 'market price' order get priority over any 'limit price' orders? In my example if someone gives buy order at 'market price' before opening the market, it will even have priority over highest bidder /$0.023/, therefore, will be the one gets filled first at $0.02, right?

Cheers

 

[burglar]

... 'market price' order get priority over any 'limit price' orders? ...

Cheers

Hi bathuu,
I believe (but may be wrong) that you cannot place a "market bid" in the pre open.

There are several threads and many posts on the nuances of the pre open.
Here is one:
https://www.aussiestockforums.com/forums/showthread.php?t=11619

I suggest a search on "pre open".
Also be aware that bots are active in the pre open and increasingly so!

burglar

 

[warennie]

http://www.asx.com.au/products/calculate-open-close-prices.htm

This explains the 4 phase operations for calculating open prices.
Its a bit complex, but once you get your head around it, its actually quite simple.
Simply its a demand and supply operation, but it insures that everyone participating in the open trade at the same price with a first in best dressed approach.