CBD - Cannasouth Ltd

[daveypnz]

The other problem as others have said above is that Sharesies platform buys and sells most shares at "market" which accelerates the rise and fall.

Experienced investors would go in and check market depth and then make a limit bid. When the order is placed a market price is suggested. Most experienced buyers/sellers ignore that and decide the entry / exit price.

Sharesies buyers put in a sell or buy order and then wait and see the price. Because of the way the algorithm works that means they are always buying at the highest price and selling at the lowest price because this guarantees that Sharesies get their order processed. A little bit like real estate agents they only want to make sure the deal goes through. They don't protect their customers. They make sure the deal happens and they get their commission. It's not an intelligent algorithm for anyone but Sharesies.

So, a lot of Sharesies people decided to sell because the price was $1.30 and put in a sell order. Panic had set in and it got filled at around 70 cents.

The same has happened with PEB and a few other penny stocks. IKE. PLX. etc

This is what confuses me. The sharesies bid sat below the top bid nearly all day, once it got to the top and was filled the crash began. If it were a market order(s) shouldn't it have always been at the top/it wouldn't have been such a massive order because it would have been getting filled throughout the day?

cancan.jpg

[peetter]

This is what confuses me. The sharesies bid sat below the top bid nearly all day, once it got to the top and was filled the crash began. If it were a market order(s) shouldn't it have always been at the top/it wouldn't have been such a massive order because it would have been getting filled throughout the day?

cancan.jpg

I noticed once when buying there must be some kind of limit to what sharesies buys at market rate to what the price was when user put the order in. IE when I put order in when sharesies showed 1.05, it wouldn't buy at market if next offer was 1.25.

[kiwitrev]

What I did notice when the sharesies bid first came to market it was $1.03 then progressively chased the price up until order filled.

[Sir Ten]

This is bull****.

Not a holder. Just an observer. Daylight robbery.

[daveypnz]

I noticed once when buying there must be some kind of limit to what sharesies buys at market rate to what the price was when user put the order in. IE when I put order in when sharesies showed 1.05, it wouldn't buy at market if next offer was 1.25.

That makes sense I guess but in this case the spread was tight for most of the day. Even if it weren't, it still doesn't explain why the sharesies order continually sat just behind the top bid until 3pm.

[Cyclical]

Sharesies buyers put in a sell or buy order and then wait and see the price. Because of the way the algorithm works that means they are always buying at the highest price and selling at the lowest price because this guarantees that Sharesies get their order processed. A little bit like real estate agents they only want to make sure the deal goes through. They don't protect their customers. They make sure the deal happens and they get their commission. It's not an intelligent algorithm for anyone but Sharesies.

Are you sure about this tango? My take on it is that a "market" buy from any of the brokers is presented to the exchange as such and the price at which it is filled is governed by the exchange, not some price determined by a broker algorithm. I've bought and sold stocks via Sharesies that have sometimes been filled by multiple parcels at differing prices, which suggests to me this is all done on the market/exchange in real time as matches are made.

[tango]

Are you sure about this tango? My take on it is that a "market" buy from any of the brokers is presented to the exchange as such and the price at which it is filled is governed by the exchange, not some price determined by a broker algorithm. I've bought and sold stocks via Sharesies that have sometimes been filled by multiple parcels at differing prices, which suggests to me this is all done on the market/exchange in real time as matches are made.

My understanding is the Sharesies bids go in without a limit and therefore the exchange calculates the best match price. If people are being greedy and demanding more the Sharesies bid will keep chasing the market higher until it finds a match.

Compared with putting in a limit order which only fills at the price you bid or better b

So theoretically buy bid = $1.00
Sell bid $1.05

Limit bid would be at whatever you pick until filled. Let’s say $1.05. So it only gets filled at $1.05

If at the same time a Sharesies order is put in at market and all of the available sell bids at $1.05 are filled then the algorithm will look for the next sell offer and increase its bid to find a match. It will fill at the lowest matching sell offer but the algorithm can keep pushing the bid offer up if it doesn’t immediately get a match.

Think about pre-open and pretty close. If you keep refreshing the screen you will notice that the match price keeps changing as more bids are received. Sharesies does the same thing but on a hot market that rapidly escalated the price up and when fear is driving the sales it can rapidly spiral down

This is really only going to happen in small cap Stocks dominated by small retail investors. I can’t see this happening in the bigger companies like A2 milk or Mainfreight. I expect the big institutions will be having the most influence on price there

[Mudfish]

Cannasouth is a sexy stock and a great story. What's a story worth? Be careful.

[blackcap]

My understanding is the Sharesies bids go in without a limit and therefore the exchange calculates the best match price. If people are being greedy and demanding more the Sharesies bid will keep chasing the market higher until it finds a match.

Compared with putting in a limit order which only fills at the price you bid or better b

So theoretically buy bid = $1.00
Sell bid $1.05

Limit bid would be at whatever you pick until filled. Let’s say $1.05. So it only gets filled at $1.05

If at the same time a Sharesies order is put in at market and all of the available sell bids at $1.05 are filled then the algorithm will look for the next sell offer and increase its bid to find a match. It will fill at the lowest matching sell offer but the algorithm can keep pushing the bid offer up if it doesn’t immediately get a match.

Think about pre-open and pretty close. If you keep refreshing the screen you will notice that the match price keeps changing as more bids are received. Sharesies does the same thing but on a hot market that rapidly escalated the price up and when fear is driving the sales it can rapidly spiral down

This is really only going to happen in small cap Stocks dominated by small retail investors. I can’t see this happening in the bigger companies like A2 milk or Mainfreight. I expect the big institutions will be having the most influence on price there

Sharsies offers limit orders. They also offer market orders. Just like any other broker.

[Hello123]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/CBD/358912/329678.pd

I would go crazy if we saw this share do the same thing next week.