Please explain... Discussion, page-12

"When I say regulates I mean who has the final say or who actually types this number in before we as consumers see this on our computer screens. I know Iam coming across as a ley person in this matter but I always like to hear multiple versions and study into anything Iam involved in. As I'm sure many other viewers in these discussions will also benefit from and increases knowledge to make sound decisions."




Hi Goneflying

Noone regulates the price per sa, ... think of the market process as just one big electronic auction buyers say what they are willing to pay and sellers either go yes or no

so buyers just offer up a bid and if a seller accepts then the deal is done at that price, thus creating the SP that you see on your screen

if the bid is too low, sellers simply says no to the bid.
The bidder then has to offer a higher price until it gets accepted (matched) by the seller.

Now during TH this continues to happen, only difference is it is confined within "the que" or "off market"
orders are matched and queued up on the ASX system ( the so called market depth or level 2 data you see on your screen) first in line is the highest bid matched to a seller, each of whom had to be the first to place their order onto/into the trading system before anyone else (down to milli seconds) it changes constantly with everyone vying to be the first.
Once the stock comes out of the TH the highest matched order is traded giving you and the market its SP.
You can not place an "at market order" during the pre open so the price is a known quantity based on the matched sale price, albeit for only a milli second in many cases

If sellers keep saying no to the bidders during the TH the bidder offers more and more and that gives you a positive gap at open
but if the bidders find easy matches they tend to lower their bids and the price ends up with a negative gap.


Cheers mate .... I Hope I made it a teeny bit clearer and your next trade is a Disallowed