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Originally posted by JohnCohen
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I still don't know if I've explained that well enough - at the point that OSL started trading this morning (well, Tuesday morning, as it's now past midnight) there was not a single bid left above 5.2c or a single offer left below 5.2c. Fact. Every single bid that was above 5.2c and every single offer that was below 5.2c was settled at 5.2c. That's how the opening auction works. You can watch it happen any morning. It's a staggered open, so not every stock starts trading at the same time. The closer your stock code is to the beginning of the alphabet, the earlier you will start trading. OSL would probably start trading at 10:04 or 10:05am Sydney time. Something like that. The opening price depends entirely on the market depth, with all overlapping bids and offers settled at the one opening price. Before the market opens, you can see the "indicative price" in the stock quote and the market movement (in Feihung's example above, the movement was +8% or +$0.004) is based on the indicative price. However, the indicative price is just that - indicative - and it changes as new bids and offers are added, adjusted or deleted (pulled). In this case they indicative price was $0.054 at the time Feihung took that snapshot from Commsec, but more offers were added below that price and/or some higher bids may have been pulled before the opening auction took place and OSL opened at 5.2c. All trades that occurred at prices higher than that were as a result of bids that were placed AFTER the open, because all bids over 5.2c before the open were settled at 5.2c. That's how the opening auction works. You can check the opening price for any trading day by looking at the trade history of a stock. In Commsec that's the tab between "Company Research" and "Charts" that you'll see above your stock quote.
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Appreciated all your posts and another posters in this thread. Negative + positive.
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