Forum Archive Index - July 2001

[Adam Rands <adamlist@iguana2.com>]

Christian

It is often the case in pre opening (30min period before the market opens 
at 10am) that people bid significantly higher than the offer price.

This ensures them that their order will be traded at opening.

When the market opens the trade is matched on a volume weight price (VWAP) 
basis and the trade will be executed at this price

The trade *does not* go through at the bid price

In todays example of RMG

Buyers  Sellers
6,000 30.5      26.5 20,000
8,000 30        27 666,600
25,000 29       27.5 332,090
27,361 27       28 361,800

66,361 shares will trade at 27 (using the VWAP) will trade at opening

All of this information is available on http://stocknessmonster.com

It is my understanding that SNM is the only website that provides this 
information.

SNM also provides the user information on what the market depth queue will 
look like after the market has opened.

This can be incredibly useful if you want to place an order at the top of 
the queue once the madness of pre open is over.

Cheers

Adam Rands
Iguana2




At 09:42 AM 13/07/2001, you wrote:
>Is something cooking or can't I read Market Depth? I just had a look at the
>Depth of RMG on the ASX and I can see small bids entered up to 31Acents. Its
>not big volume but who wants to buy at 31Acents if you can buy at 27Acents?
>Cheers,
>Christian
>
>
>
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