Why am I losing places in the queue?

[oldno7]

Hi y'all. I'm new to share trading and I was just wondering why, when I place an order to buy certain shares, my place in the queue keeps sliding back (say from 11th back to 16th for example). This happen during the course of a day, sometimes overnight, and I am not amending or changing the order in any way. Eventually my place moves forward as you would expect but I don't get why I'm getting queue-jumped. Am I missing something simple?
Any thoughts would be appreciated.

 

[cynic]

Hi y'all. I'm new to share trading and I was just wondering why, when I place an order to buy certain shares, my place in the queue keeps sliding back (say from 11th back to 16th for example). This happen during the course of a day, sometimes overnight, and I am not amending or changing the order in any way. Eventually my place moves forward as you would expect but I don't get why I'm getting queue-jumped. Am I missing something simple?
Any thoughts would be appreciated.

Are those orders that have been jumping ahead, offering to buy/sell at higher/lower price than that specified on your order/s?

 

[Country Lad]

Hi y'all. I'm new to share trading and I was just wondering why, when I place an order to buy certain shares, my place in the queue keeps sliding back (say from 11th back to 16th for example). This happen during the course of a day, sometimes overnight, and I am not amending or changing the order in any way. Eventually my place moves forward as you would expect but I don't get why I'm getting queue-jumped. Am I missing something simple?
Any thoughts would be appreciated.

Keep in mind that this is an auction system. If you were on top in the example, say with the 23.5 bid, and somebody then bids the 24 followed by somebody with the 24.5 bid, you go further down the list as higher bids are placed.

Exactly the same as you being in an auction room to buy a Ferrari. You bid $1,000 and somebody then bids higher and you are out of the game unless you increase your bid.

The only way you will get back on top in the share game unless you increase your bid is if the price drops down to whatever you are bidding – highly unlikely and you probably wouldn’t want to be in the action for a falling price.

 

[tech/a]

CL weren't you happy with my K bid for your Ferrari?

 

[Country Lad]

CL weren't you happy with my K bid for your Ferrari?

So it was you!!!!

 

[frugal.rock]

Hi y'all. I'm new to share trading and I was just wondering why, when I place an order to buy certain shares, my place in the queue keeps sliding back (say from 11th back to 16th for example). This happen during the course of a day, sometimes overnight, and I am not amending or changing the order in any way. Eventually my place moves forward as you would expect but I don't get why I'm getting queue-jumped. Am I missing something simple?
Any thoughts would be appreciated.

G'day Jack Daniels,

You may be missing centre point and conditional orders.
Conditional orders can be set to jump the que by buying a small portion of the order at a higher price and then the rest of the order at the next tick down price.
This jumps the que.
Buying or selling, the same concept applies.
If you are getting que jumped, interpret this into, it's worth jumping the que.... unless it's a fake out.

Cheers.

 

[barney]

Hi y'all. I'm new to share trading and I was just wondering why, when I place an order to buy certain shares, my place in the queue keeps sliding back (say from 11th back to 16th for example).

Hi "Old" (Should be my username lol )

As @frugal.rock has alluded to, conditional orders ... (generally in an illiquid stock) might be a causation.

From my own experience (because I dabble in Specs) .. it is likely it's the CXA (Chi-X) traders who's orders are able to jump "my queue" due to similar liquidity issues.

I have noticed I am also able to jump the queue against CXA positions on illiquid Stocks because I am an ASX trader .... win some lose some I guess ... depending whether the Stock goes up or down after you did or didn't Buy

 

[Smurf1976]

To pick a random very well known listed company to illustrate, let's use BHP.

(Note that this is to illustrate the point only and that I'm not commenting as to whether or not BHP would be a good investment at this time).

Today there were 30,234 trades with a total of 9,195,007 shares changing hands.

Tomorrow most likely will be similar, there was nothing special about today.

Market depth shows 654 buyers for 343,406 shares and it shows 452 sellers for 348,510 shares. That's tiny compared to the daily trading volume of this stock:



Ignoring that the market is presently closed, if it was open then I could jump the whole lot of those buyers simply by entering a buy order at $37.44

That in practice will occur. Throughout the day orders will be placed and some will be from people definitely wanting to buy or sell and who'll simply take whatever price is available - if selling then they'll match the highest buy order and vice versa if buying.

Others will be aiming to buy / sell at a price that's lower / higher than the present price and will place their order accordingly but there's no guarantee that price actually goes to that point. I could place a buy order at say $37.09 but it will never be filled so long as there's a constant stream of others placing buy orders at a price higher than mine. Anyone placing an order at $37.10 or above jumps over me every time. Where I'll win is if that doesn't happen and price does indeed come down and my order is filled - an expectation of that happening is why I'd place the order at that price.

Above just for example to illustrate the point. I'm not suggesting that anyone should or shouldn't buy shares in BHP or that price will go to any particular level. Prices discussed are for example only.

 

[barney]

Above just for example to illustrate the point.

Your point is valid Smurph, however I think the OP was more bemused by his "trade in the queue" being re-positioned to an inferior position rather than placing a market order above the current "bid" price, which as you correctly state, will in essence jump the (market depth) queue.

Perhaps if @oldno7 could mention the Stock in question, a more likely scenario could be determined. I still suspect it is the Chi-X vs ASX issue but that is just in my experience and there are likely other possibilities.