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clock Created with Sketch. 06/10/21
11:19
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Originally posted by TerribleTadpole:
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At 4:00 there are no "residual" overlapping orders because overlapping orders are executed immediately. There's a window between 4:00 and 4:10 when you can place new orders which may participate in the closing single-price auction if they overlap with other orders. It's a long call to say that "someone really wanted this to close at 4.8c" if there's a small volume either way. Yes, traders try to play games with the auction; putting in a large high-priced buy order just after 4:00 and then cancelling it just before 4:10 might draw in lots of low-priced sells, which are then executed at a low price when the big buy order disappears. With a highly liquid stock you will get traders trying to push or pull in both directions and it's a lottery as to which orders are still there in the auction.
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Thanks Tadpole. I like this response and is pretty much in line with what I was thinking too.. I just thought I’d at least see what others thought and potentially start a different topic of conversation, other than “technology limitation” and “this is going to the moon”.
