Opening and Closing Auction Explained

As a lot of people do not understand the opening and closing Auction I thought I would explain it. As you will all have noticed there are wild variations in buying and selling prices, this does not mean they are wanting that price but have an intent to either buy or sell at the opening average. The highest buyer will be first in line for that average and the lowest seller will be first in line for the average. To work out the average you can generally take the top 10 list and do a cumulative total on the buyers and sellers. when working out the average the main thing to do is to understand that the ASX will not sell your shares below the set price and will not buy above your set price. Below is the top ten buyers and sellers as taken on Friday at 5.00 PM. If you go down the cumulative list you will see that 28c at the moment is the opening price, this is the point where neither the buyer or seller is paying or receiving more or less than their offer. There are buys for 958,000 at 28c and sales for 1,118,461 at 28c. At the moment there are no sellers available for the buyers at 27c because the average is above his bid. The first to get their contract filled will be the highest buying bid and the lowest selling bid, in the case of sellers for 1,118,461 there are only buys for 958,000 minus 416,476 =541,524 thus these sales will go to the first sellers at 28c in line at.
A point to remember the opening and closing auction can be a great tool when the share is on a run or crashing!
BUYERS CUM/TOTAL SELLERS CUM/TOTAL
1 50000 0.032 50000 1ST 0.026 48476 1 48476 1ST
1 100000 0.031 150000 2ND 0.027 368000 2 416476 2ND
4 633000 0.03 783000 3RD 0.028 1118461 7 1534937 QUE
1 175000 0.028 958000 LAST 0.029 163500 3 1698437
2 90000 0.027 1048000 0.03 1517279 9 3215716
1 1000000 0.026 2048000 0.031 1913227 7 5128943
4 324000 0.025 2372000 0.032 1084157 8 6213100
6 419170 0.024 2791170 0.033 2458000 6 8671100
5 1036000 0.023 3827170 0.034 550000 3 9221100
5 1680000 0.022 5507170 0.035 247803 5 9468903