Thread #1,000,000 about the pre-open!

[Trembling Hand]

Re: Thread #1,000,000 about the preopen!

Ok here they are. The BHP file is from today's open but same thing applies. You can see the indicative open tick down from $40.20 to $40.10 just before it opens then it actually goes through at $40.08.

BHP file,
http://tremblinghandtrader.typepad.com/BHPPreOpen9_7_08.wmv

OXR file,
http://tremblinghandtrader.typepad.com/OXRClosingAuction.wmv

 

[xyzedarteerf]

Re: Thread #1,000,000 about the preopen!

thanks TH.

 

[Timmy]

Re: Thread #1,000,000 about the preopen!

Thanks for the vids TH.

I have stickied this thread, at least for the short-term.

I think one of the problems is although the question has been answered on, let's count 'em, yep 1,000,000 threads, beginners don't know to search for 'pre-open' (the problem with jargon is new entrants don't know it yet) so may as well prepare for it to be asked a few more times...

 

[captain black]

Re: Thread #1,000,000 about the preopen!

I have stickied this thread, at least for the short-term.

Thanks Timmy.

I think one of the problems is although the question has been answered on, let's count 'em, yep 1,000,000 threads, beginners don't know to search for 'pre-open' (the problem with jargon is new entrants don't know it yet) so may as well prepare for it to be asked a few more times...

No doubt, but it will be handy to have this thread to link to next time the question is asked, TH's excellent videos should clear up the confusion for most newcomers.

 

[mkelpie]

Pre-open prices in market depth

Hi ppl,

When I'm looking at the buy/sell prices in market depth at pre-open, what is going on?

This morning I was looking at CVN that showed lots of buyers at $1.00, but it opened just 0.05 higher than previous close, what's with that?

cheers

 

[cooper1308]

Re: Pre-open prices in market depth

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

Hi ppl,

When I'm looking at the buy/sell prices in market depth at pre-open, what is going on?

This morning I was looking at CVN that showed lots of buyers at $1.00, but it opened just 0.05 higher than previous close, what's with that?

cheers

 

[nomore4s]

Re: Pre-open prices in market depth

Hi ppl,

When I'm looking at the buy/sell prices in market depth at pre-open, what is going on?

This morning I was looking at CVN that showed lots of buyers at $1.00, but it opened just 0.05 higher than previous close, what's with that?

cheers

mkelpie,

I have moved your post to this thread, please read through it for a indepth answer to your question.

 

[hobotivo]

How are opening prices worked out?

As I look at the depth of market on commsec right now (9.15am, pre-open) for FMG I see at the top of the BUY an order for 15,000 at $4.90, and at the top of SELL an order to sell 1,064 at $4.12. How will this work out? Will the seller get $4.90 or will the buyer get $4.12? or something else altogether?

Please pardon my ignorance, I'm just starting to try to understand how this stuff all works.

Cheers
Hobotivo

 

[nomore4s]

Re: How are opening prices worked out?

As I look at the depth of market on commsec right now (9.15am, pre-open) for FMG I see at the top of the BUY an order for 15,000 at $4.90, and at the top of SELL an order to sell 1,064 at $4.12. How will this work out? Will the seller get $4.90 or will the buyer get $4.12? or something else altogether?

Please pardon my ignorance, I'm just starting to try to understand how this stuff all works.

Cheers
Hobotivo

Hobotivo

I have moved your post to this thread, please read through it for a indepth answer to your question.

 

[Australia]

Re: What does it mean when the market depth before opening is highl

Here is another one but this time its todays closing Auction on OXR.

As you can see the last trade was $2.11 at 4:00 pm.

how do you get access to that kind of information? Is that Iress trading platform like those offered by Commsec at a premium price?

 

[Trembling Hand]

Re: What does it mean when the market depth before opening is highl

how do you get access to that kind of information? Is that Iress trading platform like those offered by Commsec at a premium price?

Its not iress but thats where most seem to start when they are after Dynamic data.

 

[MilanB]

Pre-open bid/ask definition

Hi All!

I have just joined this Forum and am hoping to get some wisdom from you all regarding the relavance of placing pre-open orders or more succinctly put.... Is there a strategy used to ensure that whatever the stock price opens at one will have a high chance of getting it at that price.

As an example, if a stock is sitting at 5c ask and 6c bid does this mean that anyone placing a 6.5c bid will have a higher chance of getting the 'lowest' open price.

Thanking everyone in advance...

Mick.

 

[AngusSmart]

Please explain this...

Looking at rio, it closed at 65 yesterday

someones got a sell on it for 61...

is the person selling at 61 for real? or whats the story?

Hows does this work can someone explain a bit about it?

 

[nomore4s]

Re: Please explain this...

Looking at rio, it closed at 65 yesterday

someones got a sell on it for 61...

is the person selling at 61 for real? or whats the story?

Hows does this work can someone explain a bit about it?

Angus,

Go through this thread, from memory there are some videos in it that explain the process.

 

[AngusSmart]

Re: Please explain this...

Angus,

Go through this thread, from memory there are some videos in it that explain the process.

Ok sweet, didnt know it was pre open! i have read this before. so from what i gathered no body is actually buying at that price, they are just trying to jump the queue and get in first for the opening price..

is that correct??

 

[nomore4s]

Re: Please explain this...

Ok sweet, didnt know it was pre open! i have read this before. so from what i gathered no body is actually buying at that price, they are just trying to jump the queue and get in first for the opening price..

is that correct??

Pretty much yes.

 

[Wysiwyg]

Full explanation here. Actually the ASX site is full of relevant information.

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

 

[nulla nulla]

Hi nomore4s, I have a question for you that I believe is consistant with this thread.
I have noticed in the morning indicative auction (iap) for opening prices that, in some shares, there will be large volumes of buys above the iap, offset by large volumes of sells below the iap. However when the market opens, the volume of shares traded is significantly less then the combined volume that was showing in the buys above the iap and the sells below the iap.

Where do these large volumes evaporate to in the micro seconds before the market opens? Is it a broker juggling both sides of the iap then withdrawing the buy/sell bids when they have achieved their desired price?

 

[pixel]

Is it a broker juggling both sides of the iap then withdrawing the buy/sell bids when they have achieved their desired price?

Simple answer: "Yes"
Addendum: You may find this "juggling" especially noticeable on the morning of an Option Expiry day, when it is quite important for writers of puts and calls to ensure the exercises do the least "damage". Meaning, most options must expire worthless, so the writers can keep the premium AND their share positions (be they Long or Short). On those days, it is quite important to know the relevant price points at which the Open Interest in the nearest Put or Call has the largest excess.

PS: For "broker" better read FM - which, depending on your mental inclination stands for either "Fund Manager" or "F'ing Manipulator".

 

[noie]

I just thought i would add something, some exchanges use priority pro-rata system and of course active GTC's in the market win on a priority FIFO based trading system.

People in the UK would abuse the GTC system months in advance hoping to catch a big overnight movement