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

Discussion in 'Beginner's Lounge' started by ChomChom, Jul 8, 2008.

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  1. Trembling Hand

    Trembling Hand Can be found on the bid

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  2. xyzedarteerf

    xyzedarteerf

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    Re: Thread #1,000,000 about the preopen!

    thanks TH.
     
  3. Timmy

    Timmy white swans need love too

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    Re: Thread #1,000,000 about the preopen!

    Thanks for the vids TH.

    I have stickied this thread, at least for the short-term.

    I think one of the problems is although the question has been answered on, let's count 'em, yep 1,000,000 threads, beginners don't know to search for 'pre-open' (the problem with jargon is new entrants don't know it yet) so may as well prepare for it to be asked a few more times...
     
  4. captain black

    captain black

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    Re: Thread #1,000,000 about the preopen!

    Thanks Timmy.

    No doubt, but it will be handy to have this thread to link to next time the question is asked, TH's excellent videos should clear up the confusion for most newcomers.
     
  5. mkelpie

    mkelpie

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    Pre-open prices in market depth

    Hi ppl,

    When I'm looking at the buy/sell prices in market depth at pre-open, what is going on?

    This morning I was looking at CVN that showed lots of buyers at $1.00, but it opened just 0.05 higher than previous close, what's with that?

    cheers
     
  6. cooper1308

    cooper1308

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    Re: Pre-open prices in market depth

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

     
  7. nomore4s

    nomore4s Commonsense isn't that common

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    Re: Pre-open prices in market depth

    mkelpie,

    I have moved your post to this thread, please read through it for a indepth answer to your question.
     
  8. hobotivo

    hobotivo

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    How are opening prices worked out?

    As I look at the depth of market on commsec right now (9.15am, pre-open) for FMG I see at the top of the BUY an order for 15,000 at $4.90, and at the top of SELL an order to sell 1,064 at $4.12. How will this work out? Will the seller get $4.90 or will the buyer get $4.12? or something else altogether?

    Please pardon my ignorance, I'm just starting to try to understand how this stuff all works. :)

    Cheers
    Hobotivo
     
  9. nomore4s

    nomore4s Commonsense isn't that common

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    Re: How are opening prices worked out?

    Hobotivo

    I have moved your post to this thread, please read through it for a indepth answer to your question.
     
  10. Australia

    Australia

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    Re: What does it mean when the market depth before opening is highl

    how do you get access to that kind of information? Is that Iress trading platform like those offered by Commsec at a premium price?
     
  11. Trembling Hand

    Trembling Hand Can be found on the bid

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    Re: What does it mean when the market depth before opening is highl

    Its not iress but thats where most seem to start when they are after Dynamic data.
     
  12. MilanB

    MilanB

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    Pre-open bid/ask definition

    Hi All!

    I have just joined this Forum and am hoping to get some wisdom from you all regarding the relavance of placing pre-open orders or more succinctly put.... Is there a strategy used to ensure that whatever the stock price opens at one will have a high chance of getting it at that price.

    As an example, if a stock is sitting at 5c ask and 6c bid does this mean that anyone placing a 6.5c bid will have a higher chance of getting the 'lowest' open price.

    Thanking everyone in advance...

    Mick.
     
  13. AngusSmart

    AngusSmart

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    Please explain this...

    Looking at rio, it closed at 65 yesterday

    someones got a sell on it for 61...

    is the person selling at 61 for real? or whats the story?

    Hows does this work can someone explain a bit about it?
     

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  14. nomore4s

    nomore4s Commonsense isn't that common

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    Re: Please explain this...

    Angus,

    Go through this thread, from memory there are some videos in it that explain the process.
     
  15. AngusSmart

    AngusSmart

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    Re: Please explain this...

    Ok sweet, didnt know it was pre open! i have read this before. so from what i gathered no body is actually buying at that price, they are just trying to jump the queue and get in first for the opening price..

    is that correct??
     
  16. nomore4s

    nomore4s Commonsense isn't that common

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    Re: Please explain this...

    Pretty much yes.
     
  17. Wysiwyg

    Wysiwyg Everyone wants money

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  18. nulla nulla

    nulla nulla Positive Expectancy

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    Hi nomore4s, I have a question for you that I believe is consistant with this thread.
    I have noticed in the morning indicative auction (iap) for opening prices that, in some shares, there will be large volumes of buys above the iap, offset by large volumes of sells below the iap. However when the market opens, the volume of shares traded is significantly less then the combined volume that was showing in the buys above the iap and the sells below the iap.

    Where do these large volumes evaporate to in the micro seconds before the market opens? Is it a broker juggling both sides of the iap then withdrawing the buy/sell bids when they have achieved their desired price?
     
  19. pixel

    pixel DIY Trader

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    Simple answer: "Yes"
    Addendum: You may find this "juggling" especially noticeable on the morning of an Option Expiry day, when it is quite important for writers of puts and calls to ensure the exercises do the least "damage". Meaning, most options must expire worthless, so the writers can keep the premium AND their share positions (be they Long or Short). On those days, it is quite important to know the relevant price points at which the Open Interest in the nearest Put or Call has the largest excess.

    PS: For "broker" better read FM - which, depending on your mental inclination stands for either "Fund Manager" or "F'ing Manipulator".
     
  20. noie

    noie

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    I just thought i would add something, some exchanges use priority pro-rata system and of course active GTC's in the market win on a priority FIFO based trading system.

    People in the UK would abuse the GTC system months in advance hoping to catch a big overnight movement
     
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