Market Depth

[andrew_c2o]

A simple question I'm sure most of you could answer.

When looking at the market depth table in say comsec.com.au what does the "Number" column give an indication of, surely it can't mean 1 buyer? Does the 1 represent 100 buyers or something?

 

[dutchie]

Andrew it indicates the number of buyers (or sellers) making up that total number of shares at that price.

eg
Number ----Quantity-----price
-- 2----------2,619-------16.80

Means there are two buyers with a total of 2,619 shares.
ie. one might have 2,000 , the other 619.

Protrader lets you break it down to see each separate seller (or buyer).

 

[andrew_c2o]

Thanks dutchie

Another question:

I can see on the market depth chart at the top that there is 1 buyer at .3 and a seller at .28, does this mean the buyer can now buy lower since they are at the top of the buy list or will the .28 seller go to some of the 6 buyers at .28?

 

[dutchie]

G'day Andrew

That shot of the depth looks like it was before the market opened. Once the market opens the Buy side normally decreases in price and the Sell side increases, with the lowest sell price being a little higher than the highest Buy side.

Before the market opens at 10.00 a.m. orders can be placed and a typical situation may be found as per your example. The ASX continually updates the proposed opening price during the morning as orders come in. At 10.00 am (or thereabouts) the opening price is finalised and all Buyers above that price are filled and all the Sellers below that price are filled.

All trades are normally made at the top quotes on the depth list. If your not happy with these then you just have to wait till they increase (or decrease) to your level.

There is another thread explaining the pre opening price somewhere.

ProTrader (Comsec) also displays the pre open price as it changes.

 

[Herms]

Some questions regarding market depth at pre open

Say for example this morning a share (ABC) have 17 sellers at 0.55 and there is 1 buyer at 0.60 and only 2 sellers at 0.60. If I place my buy order at 0.55 would that mean that my order will get filled sooner compare to the buyer at 0.60 ?

I was thinking if I increase my asking price would that mean my order get filled up sooner ?

Cheers,

Herms

 

[bvbfan]

The buys work from highest to lowest and sells in reverse (lowest to highest)

a 55c bid would be after all bids above 55c, so no in your case

 

[SevenFX]

If I place my buy order at 0.55 would that mean that my order will get filled sooner compare to the buyer at 0.60 ?

The higher you place your buy order & the earleir you place your buy order preopen the more likely you will get filled first at a indictictive open price of somwhere between 55c & 60c which volume will on either side will play a part into determing that open price.

Also consider buying at market open can have pitfalls if sp trades down.

Cheers
SevenFX

 

[Herms]

Cheers guys,

Thanks mate!

 

[golddigger]

Herms, Firstly good luck & be patient-- the good trades are always out there we just have to wait & find them.

Now MARKET DEPTH watch the PRE-OPEN & POST-CLOSE to see what happens with different stocks (top 50) they all behave differently as there is a lot of manipulation by the big fellers
A good TIP-- beginners open the market & the pros close it.

GOOD LUCK