Forum Archive Index - August 2000

[Brian Gale <brigale@i4free.co.nz>]

Following on with this topic which perhaps you or Sarah could
answer.

At 12:51 10-08-00 +1200, you wrote:

> 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.

How is the match actually achieved ?  Take a case where the bid is
20c and the offer 21c. One or other of the parties has to change to
achieve a sale.  If both parties are on reserve prices there can't
be a match.
I think it is true to say the most brokers prefer clients to be ' At 
Market' which obviously then gives the broker the final say and of course
the ability to effect the sale. But one or other of the parties lose out,
albeit by 1cent in this example. Is this a question of give and take
between brokers ?

BG