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

[pixel]

hmmmm... so much to learn.
If there are more buyers than sellers at pre open can you place a buy order to market to ensure your contract is filled? eg.. before the market rises to meet the orders?

simple answer: No.
While a stock is in pre-open, you cannot place an order "at market"; you HAVE TO specify a limit.

If you have a live data service that includes market depth (i.e. bids and offers), there will be an "Indicative Open Price" or IAP on display. So you don't even have to sum it all up yourself - which is quite handy because every new bid or offer will of course change the situation.
The good news is, you can bid any amount. For example, if the iap is $1 and you're desperate to get filled, you can bid x shares for $2, just to make sure you do get your fill.
The bad news is, you may end up getting the shares at, say, $1.10, only to find the price drop back to $1.01.

 

[burglar]

... For example, if the iap is $1 and you're desperate to get filled, you can bid x shares for $2, just to make sure you do get your fill.
The bad news is, you may end up getting the shares at, say, $1.10, only to find the price drop back to $1.01.

You need to be aware that sellers can drop out and leave you hanging out to dry.
i.e. leave you paying the full $2
Experience will tell you the likelihood of this happening.
Best to not cross swords in the pre-open until you understand how it works.

 

[Ridgydidge]

Thanks guys, that has definately cleared the situation up for me

 

[justin99]

hi all, first post!

sorry to drag up an old thread but I didn't want to create a new one.
My question is regarding the pre-open;
One way for finding stocks in play is to look at pre-market movers. Is this something that can only be done with the US markets? Every chart I've looked at for ASX stocks from market close to open there is zero market activity.
Thanks

 

[Gringotts Bank]

hi all, first post!

sorry to drag up an old thread but I didn't want to create a new one.
My question is regarding the pre-open;
One way for finding stocks in play is to look at pre-market movers. Is this something that can only be done with the US markets? Every chart I've looked at for ASX stocks from market close to open there is zero market activity.
Thanks

View attachment 97507

Iress products. WebIress is clunky as ****, but it is reliable and serviceable. The column is called M% (match price % change).

 

[peter2]

@justin99 The ASX doesn't trade pre-market like the US.

 

[Gringotts Bank]

You can trade the equivalent, which is looking at the match volume and gap. Finding the match volume will require a bit of fancy footwork with excel.