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wbosher
11-11-2009, 02:11 PM
If I were to place a Limit order to sell at a certain price (say for example 30 cents) during a trading halt, and at the time the order is placed there are few other sellers so order would normally be processed, if during the course of the trading halt more sellers put sell orders in for less than mine (say 29 cents), would I need to edit my order to a lower price? Or will my order be processed first based on the time I put it through?

Basically what I am asking is if a sell order is placed at a certain time, does that order take priority over lower sell orders placed after that? Is it first come, first served or price based?

I hope this makes sense. :D

shasta
11-11-2009, 02:24 PM
If I were to place a Limit order to sell at a certain price (say for example 30 cents) during a trading halt, and at the time the order is placed there are few other sellers so order would normally be processed, if during the course of the trading halt more sellers put sell orders in for less than mine (say 29 cents), would I need to edit my order to a lower price? Or will my order be processed first based on the time I put it through?

Basically what I am asking is if a sell order is placed at a certain time, does that order take priority over lower sell orders placed after that? Is it first come, first served or price based?

I hope this makes sense. :D

Im pretty sure, with a trading halt all buy/sell bids are withdrawn.

wbosher
11-11-2009, 02:30 PM
Hmmm, I've been watching the depth during the day and it's still moving. Buyers and sellers are lowering their prices. :confused:

shasta
11-11-2009, 02:44 PM
Hmmm, I've been watching the depth during the day and it's still moving. Buyers and sellers are lowering their prices. :confused:

I think you'll find that before the ASX allows re-trading all bids will be removed. (Someone please correct me if i'm wrong!)

A trading halt is to ensure the whole market is informed on the same basis

wbosher
11-11-2009, 02:46 PM
So when the trading halt is lifted, all the current action in the depth columns will be erased, and it will be a mad dash to get in those buy/sell orders?

David Hardman
11-11-2009, 02:54 PM
Bids and offers are NOT removed when a trading halt is called.

You can enter limit orders in during a trading halt.

As to who actually gets traded as soon as the market opens... well that is determined by the same algo that works out the traded price (and orders traded) at the start and end of the day.

See the ASX website.

http://www.asx.com.au/resources/education/basics/open_Close.htm

I use Spark which has a great feature to showing where the stock is actually going to
trade at during these trading halts/start or the day.

It' called the auction price indicator

see

http://iguana2.com/spark-depth

shasta
11-11-2009, 03:00 PM
Bids and offers are NOT removed when a trading halt is called.

You can enter limit orders in during a trading halt.

As to who actually gets traded as soon as the market opens... well that is determined by the same algo that works out the traded price (and orders traded) at the start and end of the day.

See the ASX website.

http://www.asx.com.au/resources/education/basics/open_Close.htm

I use Spark which has a great feature to showing where the stock is actually going to
trade at during these trading halts/start or the day.

It' called the auction price indicator

see

http://iguana2.com/spark-depth

Thanks for the correction, my memory isn't too flash at the moment!

wbosher
11-11-2009, 03:08 PM
So the time that the order is placed during a trading halt doesn't seem to have any bearing on whether the order gets processed or not (if it get preferential treatment over late comers)? It looks like I may need to lower my selling price then if I want it to sell when it begins trading again, plenty of others piling in with a lower price than mine, and buyers are getting lower too. :mad: ...or hold on and hope for the best.

wbosher
12-11-2009, 08:59 AM
The trading halt is due to a capital raising to fund a future project, and I understand that the SP will initially drop due to dilution. I've never experienced this before so would like to know if in these instances does the SP generally (on average) bounce back fairly quickly? Or if my sell order doesn't get processed and the price plummets, could it take quite a long time to recover? :(

sharer
12-11-2009, 02:29 PM
The trading halt is due to a capital raising to fund a future project,.." - which could be favourable to you, so should you be so anxious to sell immediately?

"... and I understand that the SP will initially drop due to dilution." - this sounds like a rational expectation, but might not happen for a while, or ever. Should you hold your horses until you see what is happening?

".. I've never experienced this before so would like to know if in these instances does the SP generally (on average) bounce back fairly quickly? " - what are the chances that what previously happened with some other stock is going to be relevant to your one?

"Or if my sell order doesn't get processed and the price plummets, could it take quite a long time to recover? :( More symptoms of crystal-ball syndrome and lurking panic. Wouldn't it be great if we could somehow guess the future?
Now it is time to take a breather & a walk outside to check the roses for any signs of new buds and listen to the birds. Their advice is perhaps as good as mine. If i had to give an opinion, i'd say: stay out of that market during the trade halt or suspension. You clearly don't have the information you feel you need to make a trade just now, & should wait until you do. That means cancel any current "at risk" orders; it takes only a minute or so to re-enter them once trading resumes & you can see which of the dreaded scenarios actually seems to be happening. If for some reason you've decided it was all a mistake & you just have to get your money back a.s.a.p. then i suppose you should estimate a sell offer very likely to be snapped up in any early trades, and follow carefully the information pointed to by David Hardman above. But such a hasty & uncontrolled exit sounds like a loss maker to me.

Recent trading halts/suspensions in my own wee portfolio have exhibited ups & downs such as you foresee, but looked at calmly a few weeks later are all at least modestly profitable still.
Best wishes.

wbosher
12-11-2009, 02:46 PM
If i had to give an opinion, i'd say: stay out of that market during the trade halt or suspension.

Unfortunately sharer, I entered this trade just a day or so before they sprung this on everyone, so I have no option but to be "in" the market during this trading halt.

Basically I just want to know from people who have been in a similar situation whether it is generally best to bail, or ride it out. I'm not sure whether prices normally just dip a little due to a capital raising, or plummet.

Dr_Who
13-11-2009, 06:53 AM
Basically I just want to know from people who have been in a similar situation whether it is generally best to bail, or ride it out. I'm not sure whether prices normally just dip a little due to a capital raising, or plummet.

IT depends on each company and the size of the cap raising and also the reason for the cap raising.

If it is a large cap raising at a big discount to the closing price, then you would expect a big fall on the share price. Usually, during a cap raising period is a good chance to obtain some cheap shares in a good company.

As for trading halt, it is abit like placing an order during the opening and closing period of the market. Trading halt gives investors a chance to digest the info and place bids/asks to participate. Once trading halt is lifted you will get the average price no mater what price you bid or ask.

Hope this helps.

wbosher
13-11-2009, 08:29 AM
I've taken another look at the depth this morning, and it looks like the bids are getting higher and sellers are pulling back a little. SP will probably drop a couple of cents but may be worth riding this one out, rather than bailing.

Decisions, decisions...;)

Thanks for all of your advice everyone. :D

777
13-11-2009, 09:25 AM
As you can still place buy/sell bids during a trading halt then I would expect you can alter or withdraw any bids at the same time.

Dr Who I think you will find you are incorrect regarding "get the average price". The process at the end of trading halt would be the same as what happens at opening time and average price is not what happens.

wbosher
13-11-2009, 01:51 PM
Well, I decided to stay in. The SP dropped a few cents but I'm confident it will go back up. I may even get in on the capital raising and buy some more at the lower price if I can scrape up some dosh.

As far as the bids/asks during the trading halt, about an hour before trading resumed, everything was wiped and started from scratch. I was watching VERY closely during that hour.

Looks like it'll be ok, good call sharer. :D

sharer
14-11-2009, 06:13 PM
Well, I decided to stay in. The SP dropped a few cents but I'm confident it will go back up. I may even get in on the capital raising and buy some more at the lower price if I can scrape up some dosh. As far as the bids/asks during the trading halt, about an hour before trading resumed, everything was wiped and started from scratch. I was watching VERY closely during that hour.
Looks like it'll be ok, good call sharer. :D

Thank you.
As you are interested in compiling guiding rules, here are some tiny fragments from my own limited stock of (often costly) experience:

Hasty decisions are very often wrong & soon expensive. You can't fly blind very far before you crash; Don't offer to trade when you lack essential information. There are (nearly) always opportunities to get in or out when the required facts are disclosed. Don't hesitate to change parameters or cancel existing online orders if you feel the situation has changed from when they were entered. (On a couple of events i can recall i had the embarrasment of changing from a Buy order to an urgent Sell - & glad to find the result of avoiding the mistakes much better than if i'd tried to dodge the inevitable red faced admissions of making a silly error. Brokers didn't mind the drama at all - their commissions no doubt helped :)

Oh, & i hope the pet rose will bloom well this year.
(I keep mine in a wee pot on the balcony & visit it for a chat at moments of crisis. It is cringing in Wellington's icy winds and so far i can't even tell what colour its solitary bud is going to be eventually).
Best of luck.

wbosher
15-11-2009, 09:58 AM
Hasty decisions are very often wrong & soon expensive.

Yes, I have done this a few times and it cost me dearly. :o


i can recall i had the embarrasment of changing from a Buy order to an urgent Sell

I have been here a few times also, only to watch in horror as the SP skyrockets after selling. :eek:


Brokers didn't mind the drama at all - their commissions no doubt helped :)

Isn't that the truth. ;)



It is cringing in Wellington's icy winds

I think my roof nearly blew off last night. My wife and I had tickets to toast Martinborough this weekend but had to sell them due to my daughter getting Chicken pox. Looking out the window, I'm glad we didn't go.


Best of luck.

Thanks. :D