Opening/closing price and trades

[CLW]

Hi guys,

First post on this thread and am hoping someone may be able to help me out!? As i'm sure most of you are all aware, trading rarely opens at the exact price it closes at the day before.

My questions to you are:

1) If you put an at limit (buy) order 1 pip above the closing price, is there a chance that my order will be executed at this price during pre-opening trading even if the opening price is 5 pips above the closing price? Or is pre-opening trading purely to determine opening price and all orders below that opening price will not be executed?

2) If it is possible, will this be a large factor in determining broker? Or are most on-line brokers pretty handy with this sort of execution.

I short, I want to know if it is possible to enter a limit (buy) order during closing hours that is above closing price but turns out to be below opening price?

Thank you very much for your help.

clw

 

[Gringotts Bank]

The trades that go through on some of the big caps before normal open time (around 9-9.30 eg.) are usually cross trades, I think, so you shouldn't get hit until open.

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

 

[tech/a]

Hi guys,

First post on this thread and am hoping someone may be able to help me out!? As i'm sure most of you are all aware, trading rarely opens at the exact price it closes at the day before.

My questions to you are:

1) If you put an at limit (buy) order 1 pip above the closing price, is there a chance that my order will be executed at this price during pre-opening trading even if the opening price is 5 pips above the closing price? Or is pre-opening trading purely to determine opening price and all orders below that opening price will not be executed?

If open trading is above your limit price then you will not be executed.

2) If it is possible, will this be a large factor in determining broker? Or are most on-line brokers pretty handy with this sort of execution.

You could place a limit stop order. IB has these orders and many more.

I short, I want to know if it is possible to enter a limit (buy) order during closing hours that is above closing price but turns out to be below opening price?

yes you can

 

[CLW]

Cheers guys!

I'm based out of asia and have some clients that want to get in to the ASX. They are pretty active, day traders so good execution will be essential. Any slippage will not be looked kindly upon. do you recommend a broker that has great execution on the ASX?

CLW