Trading question

[ans25]

Hi all,

I have a small question in regards to buying shares.

Lets say hypothetically:

BUYERS || SELLERS
Quantity Price || Quantity Price
1,000 0.570 || 19,304 0.390

Now my question is, if I put in a buy for 0.58 cents and quanitity 19,304, would I get the shares at a price of 0.39 c each or 0.58(assuming there are sellers for 0.58c).
Does highest price get more priority?? Or is FIRST COME FIRST SERVE basis.
OR does this scenario only work "pre-market" time (before opening)

I hope you understand my question

Thank-you,

Wonderful website

 

[barney]

Hi all,

I have a small question in regards to buying shares.

Lets say hypothetically:

BUYERS || SELLERS
Quantity Price || Quantity Price
1,000 0.570 || 19,304 0.390

Now my question is, if I put in a buy for 0.58 cents and quanitity 19,304, would I get the shares at a price of 0.39 c each or 0.58(assuming there are sellers for 0.58c).
Does highest price get more priority?? Or is FIRST COME FIRST SERVE basis.
OR does this scenario only work "pre-market" time (before opening)

I hope you understand my question

Thank-you,

Wonderful website

Howdy ans and welcome,

Try here for the info you're after. The price you will buy the shares for is determined by the "maximum executable volume" available .... Cheers.

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

 

[MichaelD]

BUYERS || SELLERS
Quantity Price || Quantity Price
1,000 0.570 || 19,304 0.390

Now my question is, if I put in a buy for 0.58 cents and quanitity 19,304, would I get the shares at a price of 0.39 c each or 0.58(assuming there are sellers for 0.58c).

This scenario only happens in pre-open, during the closing auction and during trading halts. If you search for opening single price auction you'll get further info about the process.

In your scenario, your order would get filled first (it's in strict price-time order, so since your buy price is the highest, it would get filled first).

The actual price you'd get would depend on the rest of the market depth - the key number is the IOpen or Indicative Open price. In your hypothetical, I believe you'd get filled at 0.58, making the seller very happy.

 

[ans25]

Thats the wierd thing!

I put in an order of .48c for something but on my summary page it says I bought for 0.475.

Does this mean when putting in a buy order, if sellers price is less than the market price, and I put in a buy order price greater than the current highest buyer, I would automatically jump to the top of the queue and HENCE buy the share at a cut-down price??

Is this possible during market hours?

 

[barney]

Thats the wierd thing!

I put in an order of .48c for something but on my summary page it says I bought for 0.475.

Does this mean when putting in a buy order, if sellers price is less than the market price, and I put in a buy order price greater than the current highest buyer, I would automatically jump to the top of the queue and HENCE buy the share at a cut-down price??

Is this possible during market hours?

Yes to the first question ... you will buy at the opening price at the top of the queue, and in your case it worked out lower than your bid ....

Just be careful bidding higher than market if you are buying illiquid stocks, where the sellers may remove their orders just prior to opening ............... As Michael said above, you may make some seller very happy ...... Have a look at the webpage I pasted ... Its all there.

No, its not possible during trading hours unless the stock goes into trading halt and a new "opening market" is made.

 

[MichaelD]

Is this possible during market hours?

If there is already a seller in the market at 0.475 during normal trading and you enter a buy at 0.48 you will be filled at 0.475 (assuming adequate volume on the sell side).

 

[MichaelD]

D'oh! Sniped by Barney...twice.

 

[ans25]

Thanks a lot Michael and Barney.... really am learning quite a bit.

Happy Trading!

 

[nioka]

Just be careful bidding higher than market if you are buying illiquid stocks, where the sellers may remove their orders just prior to opening ............... As Michael said above, you may make some seller very happy .......

This happens a lot where traders manipulate a stock. It is quite common for large orders to be pulled at the last minute after their presence has had quite an influence on the SP. I once heard it was a technique used a lot by the late Rene Rivkin. I notice it a lot more before opening than at the close of trading. Particular ones to watch are the penny stocks where a fraction of a cent can be a big percentage. It can happen either way so you can be caught on the up or down.

 

[ans25]

Sorry while I'm here,
Why is it that some stocks never open and there status is still "pre-open" even though we are well into the day?

 

[barney]

D'oh! Sniped by Barney...twice.

LOL ............ Security!!! I'm being stalked .............

Sorry while I'm here,
Why is it that some stocks never open and there status is still "pre-open" even though we are well into the day?

The stock would be in trading halt (hopefully not suspension)