BIDs & OFFERs at market close - doesn't make sense....

[dirkdiggler444]

Hi, I was just watching the market close on Commsec, and noticed something that I thought was strange. BHP traded most of the day at a tad over $27, and closed at $27.570. As soon as the market closed, there are BIDs to buy at around $31.00, and OFFERs to sell at arond $13.00.

Can someone explain whats going on?? Because I've seen it before, on many stocks, but don't understand it. If someone wanted the stock, why offer $31 after market close, why not just buy for $27?? and who would want to sell at $13?? whats going on, some sort of market manipulation? if so, why? how, etc.

 

[MS+Tradesim]

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

 

[captain black]

It's a common question, so common that we have a "sticky" on the subject

https://www.aussiestockforums.com/forums/showthread.php?t=11619

 

[jackson8]

if you look at course of sales for bhp anz etc. have noticed that in the after hours auction large parcels of shares are all traded for the exact same price .

wonder if this is a way to transfer a large volume for a set price between clients

its a shame that there are no brokers or market makers as members as i am sure there is a lot that we could learn from them

does anyone know of any books written by ex market makers am sure it would make an interesting read

 

[tech/a]

if you look at course of sales for bhp anz etc. have noticed that in the after hours auction large parcels of shares are all traded for the exact same price .

wonder if this is a way to transfer a large volume for a set price between clients

These are cross trades where Brokers have buyers and sellers matched at the agreed price.

 

[cuttlefish]

if you look at course of sales for bhp anz etc. have noticed that in the after hours auction large parcels of shares are all traded for the exact same price .

wonder if this is a way to transfer a large volume for a set price between clients

its a shame that there are no brokers or market makers as members as i am sure there is a lot that we could learn from them

does anyone know of any books written by ex market makers am sure it would make an interesting read

Thats the purpose of the after hours auction - to set the closing price - thus all overlapped buy/sells will all trade at the same price at the end of the auction. No conspiracy.