Between 7:00am – 10:00am AEST, we have what’s known as the ‘Pre-open’ market phase. During this time, orders can be entered into the market but there is no trading going on. Simply, buyers and sellers quote the different prices they are willing to accept (sellers) or pay (buyers) for their shares. At 10am (Open), when the market opens for trading, the overlapping bids and offers which exist within the market are matched off against each other. Basically, an algorithm is used to determine the volume on the buy side versus the volume on the sell side, as well as the prices at which they have been placed. This algorithm results in an official ‘auction’ price, which is the price at which the stock opens.
PXS Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
