trading staedily from open, page-6

re: trading staedily from open 17 cents This is what Badfish meant by "arbitrage" Demonic,or, profiting from the difference between 2 markets.Forgive me if I'm explaining basics that you already understand here.

There may be a little of this going on but the main problem I have with this is the huge discrepancy in volumes atm.

Add to this the 1 to 1.5c advantage that the UK is leading out with each day and I think one can safely assume that most of the trade is occurring with UK shares,if not all.

Badfish's thoughts on this may differ and if so he might be able to expand on this.

The people it tends to be easiest for are large insto's/brokers that have the ability to trade on most of the worlds major exchanges.To my knowledge Gip has not had a medium/large Australian insto on the books as yet.I may be wrong here.Someone please correct if this is not the case.

Its not impossible for smaller traders but you would have to be with the right broker and carry quite a reasonable asset backing even to profit from the current difference of 1/1.5c between the markets.

The other "in your face" factor as I see it is the size of some of the buys.

Yesterday we saw a buy of over 400K and tonight we have seen several trades around the 375K mark and one of 490K.This last one represents a buy of nearly $80,000 Aus in one trade!!!

The only type of money that could be doing this is broker/institutional money.As has been mentioned before the aim has a preponderance of small/medium insto's in preference to our system which has little,if any,of these types of buyers/sellers on the asx.

Also interesting to note that the gain on the 3 month benchmark in the UK is close on 100%.A number which I tend to associate with a good gain by an insto.In my experience they tend to take anywhere between 50 and 100% on a higher risk/speculative stock like Gip,if they can get it.

But the fact remains you have to have the next step up in buyer(particularly with regard to the large size of some of the buys now occurring)thats prepared to put the money in at a 50/100% premium to what they were bought at in the first place and I cant see this being done without the belief that the stock is going places in the future.

As I type its just hit a new UK high of 7.2p(17.5 cents Aus)admittedly on a small trade,but a trade nonethe- less.

With the close still 1.5 hrs away in the UK and nearly 2.8M shares through already the close could be interesting tonight if they trade near 3.5M volume.

Think I'll be catching zzzz's again by then though.

d.