Buying after market close

quinn123 · 4 March 2010

Hey,

How do you usually trade after market close? Do you use an "at limit" order or "at market"?

Do you set your "at limit" order at the last traded price of the previous day if you want to get into the trade?

Do you use any techniques for getting into the trade?

This is obviously for when you wont be available to trade during trading hours so your looking to buy off market.

Thanks.

Quinn

treeman · 4 March 2010

lol you trade exactly the same as during market open you just wait until open to have your orders filled

You can't buy off market, you put your bid in then once the market opens and your bid makes it to the top of the que it gets transacted ... well thats if your bid amount matches a asking price but you know that right

So_Cynical · 4 March 2010

You cant buy/sell at market after the close because there is no 'market' so you put in a limit order at what ever price your happy with...if your trying to buy low or sell high, be prepared to have your order sit there unfilled for days or weeks.

I have a normal job during the day so do all my ASX buying and selling at night, fill in the order and wait....always interesting to open the emails at home after work and see what you have brought and sold.

quinn123 · 4 March 2010

Ok thanks, so you just put your limit order in and see if it gets filled. Fair enough. What about at market? I use commsec, will at market work after market close? Do you think it is a good idea to use it?

cheers

skyQuake · 4 March 2010

quinn123 said:
Ok thanks, so you just put your limit order in and see if it gets filled. Fair enough. What about at market? I use commsec, will at market work after market close? Do you think it is a good idea to use it?

cheers

It won't get filled till next day. The stuff you see post market are Crossings or broker stuff.

buysellmestuffed · 7 March 2010

wrong , i have bought and sold after the market was closed , if you put in a big enough buy or sell near or at market value and the market is heated , you will get your order through , i'm talking about within close to 20mins after close .

I'm just letting you know it does happen .

skyQuake · 7 March 2010

buysellmestuffed said:
wrong , i have bought and sold after the market was closed , if you put in a big enough buy or sell near or at market value and the market is heated , you will get your order through , i'm talking about within close to 20mins after close .

I'm just letting you know it does happen .

haha you wish. This is stocks btw. open to 4:10pm is all thats traded. Unless you can get your broker to specifically do a portfolio crossing (S1XT) it wont be done.

Any proof?

buysellmestuffed · 7 March 2010

only my word , it has happened for me twice before with large orders . this post has a couple of links that i cant post as i have less than 5 posts .i got it from down below similar threads ,Course of sales after market close.

Aviator33 said:
That would depend on your broker but as far as I know, most (if not all) let you participate in the auction. One exception is MM CFD providers (eg CMC) though DMA CFD providers should let you participate as it's a straight through system.

Basically, from 7am to before the open at 10am (pre-open) all orders are queued and a fancy algorithm matches the buy and sell orders and works out the opening price. That will be the opening price when the stock starts trading (between 10 and 10:09am depending on the starting letter of the stock code and +/- 15 seconds).

Same thing happens at market close from 4pm to 4:10pm (Pre-closing single price auction) with final price being settled between 4:10 (+ random 60 seconds) and 4:12 (CSPA)

So to participate in the auction is simply a matter of placing an order during those times. If your buy price is above the auction price at open/close it will get filled. If your sell price is below the auction price at open/close, same thing.

Most brokers will display a changing price before the open/close known as the Indicative Auction Price (IAP) so you know where your order sits in relation to that and can ammend your order to ensure you get filled.

Hope that explains it? If not, here's a couple of ASX links with more info.

Cheers

nomore4s · 7 March 2010

buysellmestuffed said:
only my word , it has happened for me twice before with large orders . this post has a couple of links that i cant post as i have less than 5 posts .i got it from down below similar threads ,Course of sales after market close.

Your orders went through during the Closing Auction and this is not after market trading.

buysellmestuffed · 7 March 2010

nomore4s said:
Your orders went through during the Closing Auction and this is not after market trading.

From the little i know that seems to be correct , i thought that closeing time was just that .a couple of order's i put through for a few cents higher were put through with a lower price than i wanted , i got back some , so i imagine i was in that auction and got my order filled at a lower price .

skyQuake · 7 March 2010

buysellmestuffed said:
From the little i know that seems to be correct , i thought that closeing time was just that .a couple of order's i put through for a few cents higher were put through with a lower price than i wanted , i got back some , so i imagine i was in that auction and got my order filled at a lower price .

Yup, that is indeed the closing auction. at 4pm the mkt 'closes' and at 4:10pm the closing auction occurs (just like the morning pre-market)
All the orders match and the final volume of the day gets done. Look up ASX CSPA for more details.

pixel · 7 March 2010

Closing Auction aside, some online brokers will also offer "conditional orders". Conditions can be pretty complex, right to the point of "One Cancels the Other" (or "OCO" orders).
Say, you expect stock XYZ to rise from your current entry price of $2; you see resistance at $2.15, which may be broken in the course of next day's trading. If it is broken, you will obviously want to buy more, so you place an order to buy 5000 more XYZ up to $2.18 as soon as $2.16 has been bid or traded.
Should the break fail end support - which you see at, say, $1.95 - you place a second conditional order to sell your current position on condition "stop loss on break below $1.95". Both orders can then be linked as OCO.

Mind you, there is a significant danger with any kind of conditional orders left in the system: Everybody who has access to the order system can find out where all the stops are sitting - and cause an avalanche of selling, aka "Stop Raid". They start the ball rolling with a few strategic sales, replacing them with cheaper stock bought at the bottom of the stop-loss panic.
Since I've been stung on a couple of occasions, I rather stay at my trading desk, placing the orders as and when necessary.

cutz · 7 March 2010

pixel said:
Mind you, there is a significant danger with any kind of conditional orders left in the system: Everybody who has access to the order system can find out where all the stops are sitting

Is that a fact ?

I was under the impression that stops sit with your broker and are only released to the market (as a buy/sell) once the price action hits your level.

pixel · 7 March 2010

cutz said:
Is that a fact ?

Let's call it "anecdotal evidence" then
In relaxed surroundings, you may even hear some brokers give you examples. "Stop Raid" isn't a term that I have invented.
Whenever I see a one-minute chart like the one below, I check market depth and - if I catch on early enough - try and snipe a few myself.

skyQuake · 7 March 2010

pixel said:
Let's call it "anecdotal evidence" then
In relaxed surroundings, you may even hear some brokers give you examples. "Stop Raid" isn't a term that I have invented.
Whenever I see a one-minute chart like the one below, I check market depth and - if I catch on early enough - try and snipe a few myself.

Look more to me like insto dumping + momentum traders catching on. A bunch of stops being triggered even at an important level wouldn't be as bad.

That type of move requires everyone to use stop MARKET orders. Looking at the volume it looks way more than retails stops being busted; As a rule, people who swing a heavy line dont use stop market...

The one 'stop raids' are done by CFD providers because they can actually see where your stops are. Brokers, physically can't. They won't risk jail time + loss of licence just to make a few grand out of retail guys.

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