Overhang seller gone !!, page-37

limit orders away from the market or at the current bid or offer price will sit there on the ASX. It is the limit/at market order that sweeps first where there is an overlap in price.

Example

HCH bid 4.5 offer 4.6

Place your buy order at 4.5 it will sit with ASX. Place your buy order at 4.6 and it will sweep ChiX first, then anything not filled will sit on ASX until filled or cancelled.

The way these players are playing this queue jump game is simple.

Example,

HCH at 4.5 with 5 million on the bid (ASX) and 1million on the offer (ASX) at 4.6

Open Markets place 200,000 on ChiX at 4.5 bid....Trufflehunter comes along and sell his 300,000 shares at 4.5 or at market. 200,000 go through on ChiX and the remaining 100,000 go through on the ASX. Open Markets have just jumped the 5 million queue on the ASX. All the retail brokers will "sweep" ChiX first with the latest algorithm, giving the bots (open markets and a couple of others) free money. Open markets then immediately (literally 1 second) place the 200,000 they acquired at 4.5 on the offer at 4.6 on ChiX, thus jumping the 1 million offer there, so that the next retail punter who buys at market will take their stock first. This goes on all day every day across most small caps with some liquidity.

I am convinced that ChiX was simply set up in conjunction with retail brokers to hurt the retail investor. Its certainly convenient that all retail brokers have their systems set up to sweep ChiX first.

If you are placing your orders over the phone, insist on ASX for orders that will fill immediately and see what they say!