Forum Archive Index - August 2000

[James Lee <James.Lee@directbroking.co.nz>]

Jeremy,

The ASX operates what is called a rolling start, the market opens in
alphabetical order so if the stock opened at 10.11 it is an S stock or
further back.  NZ and Australia both operate a system where opening bids
match off according to volume and price.
So in this case the top bid would take the top offer and continue down until
trading stops, when trading stops whatever the price is at that point it
will charge all the orders at that final price called the opening match
price.

I hope this helps.  I also believe that Sarah answers these sort of
questions' via Ask a Broker, check with Ben.

James Lee
Direct Broking.





-----Original Message-----
From: Jeremy [mailto:jeremy@electrosilk.net]
Sent: Thursday, August 10, 2000 12:19 PM
To: sharechat@sharechat.co.nz
Subject: [sharechat] Market Depth Interpretation ?


I was casually watching market depth on an Australian stock from pre-opening
to just now.  What I do not understand is the strange spread of bids and
offers that lasted up until the first sale.  They overlapped by quite an
amount, up till when the first sale occurred when they crystallised into the
normal pattern.

The first pattern is 5 minutes after opening and clearly there is an
overlap.  Why didn't the trades occur automatically?  Or is there something
technical here I don't understand?


Last change at 10:05am August 10, 2000 AEST

  BIDS   OFFERS
  # Volume   Price   Price   Volume #

1 2 2,615   386  378   10,000 1 1

2 3 3,500   385  379   16,707 4 2

3 2 5,100   383  380   4,056 8 3

4 6 7,950   382  381   10,900 3 4

5 3 15,650   381  382   10,645 7 5


After First sale :


Last change at 10:11am August 10, 2000 AEST

  BIDS   OFFERS
  # Volume   Price   Price   Volume #

1 6 57,300   382  383   10,158 2 1

2 2 7,650   381  384   400 1 2

3 16 33,193   380  385   15,553 11 3

4 4 8,100   378  386   5,200 3 4

5 6 14,100   377  387   5,570 4 5






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