CBD - Cannasouth Ltd

[tomm]

or just someone decided to short the 800k ?

[JSwan]

Wow, this stock is a classic textbook example of:

bubble-chart.jpg

[porkandpuha]

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?

I'm pretty sure those bids at $1.41 are nothing more than day traders watching the depth chart and jumping 1-2c ahead of the sharesies bid, knowing full well that there is a wave of buyers behind them to push the price up to $1.47 for example and they can sell it straight back to them.

[daveypnz]

I'm pretty sure those bids at $1.41 are nothing more than day traders watching the depth chart and jumping 1-2c ahead of the sharesies bid, knowing full well that there is a wave of buyers behind them to push the price up to $1.47 for example and they can sell it straight back to them.

Right that makes some sense but if the sharesies bid were market orders shouldn't orders have been getting matched with higher offers? It seems like it just sat there @ $1.40 accumulating more and more buyers. When the price got up to $1.48 the sharesies bid was still sitting at $1.40 with over 3000 orders.

[Cyclical]

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

Yeah, nah.

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

Correct.

[bull....]

I'm pretty sure those bids at $1.41 are nothing more than day traders watching the depth chart and jumping 1-2c ahead of the sharesies bid, knowing full well that there is a wave of buyers behind them to push the price up to $1.47 for example and they can sell it straight back to them.

then are you suggesting us traders can game sharesis algo by taking out the buys and moving the big bid up each time the price moves up.
If sharesis uses market orders then they should be executed at the price available not sit a couple cents under the current price

[Mudfish]

Nice graph JSwan - makes sense.

Wow, this stock is a classic textbook example of:

bubble-chart.jpg

[Cyclical]

then are you suggesting us traders can game sharesis algo by taking out the buys and moving the big bid up each time the price moves up.
If sharesis uses market orders then they should be executed at the price available not sit a couple cents under the current price

Yeah, there seems to be a bit much THC in this thread.

[blackcap]

Right that makes some sense but if the sharesies bid were market orders shouldn't orders have been getting matched with higher offers? It seems like it just sat there @ $1.40 accumulating more and more buyers. When the price got up to $1.48 the sharesies bid was still sitting at $1.40 with over 3000 orders.

The problem with the sharesies algorythm is that it will not always bring a market order to market. It does not do that because it wants to keep markets orderly and not push the price. For example I was wanting to by a stock with a spread of 9.8 bid and 10 cents offered. I put in a market bid but the sharesies algorythm put my bid in at 9.8 so as not to "upset" the market. If they took the 10 cents then that would have been the first time the stock traded there.

So in yesterday's CBD example, the algorythm will put a market buy on the bid side but wait before someone takes some of the offer before moving your "market" order up to the next level. If all of the offer gets taken, well there is nothing left for the sharesies algo to take and they sit dutifully on the bid waiting for the next line up to get hit.

Yes it is easy to game it if you can see it on the depth, we have done so a few times in select stock.

Sharesies really need to fix this "bug" in their system or they will lose credibility fast.


(on the other hand, I understand why they have this protection in place. Imagine yesterday that market orders were processed exactly as that... market. Just buy what is available. On a low traded stock with low liquidity the CBD price by weight of orders and volume could have been purchased up to $2.50 before more serious punters were aware of it and pushed the price back to normal levels. That is why they have the algo, to create orderly markets.)

[daveypnz]

The problem with the sharesies algorythm is that it will not always bring a market order to market. It does not do that because it wants to keep markets orderly and not push the price. For example I was wanting to by a stock with a spread of 9.8 bid and 10 cents offered. I put in a market bid but the sharesies algorythm put my bid in at 9.8 so as not to "upset" the market. If they took the 10 cents then that would have been the first time the stock traded there.

So in yesterday's CBD example, the algorythm will put a market buy on the bid side but wait before someone takes some of the offer before moving your "market" order up to the next level. If all of the offer gets taken, well there is nothing left for the sharesies algo to take and they sit dutifully on the bid waiting for the next line up to get hit.

Yes it is easy to game it if you can see it on the depth, we have done so a few times in select stock.

Sharesies really need to fix this "bug" in their system or they will lose credibility fast.


(on the other hand, I understand why they have this protection in place. Imagine yesterday that market orders were processed exactly as that... market. Just buy what is available. On a low traded stock with low liquidity the CBD price by weight of orders and volume could have been purchased up to $2.50 before more serious punters were aware of it and pushed the price back to normal levels. That is why they have the algo, to create orderly markets.)

Thanks for the reply, this makes a lot of sense now. However, shouldn't the sharesies algo also match the top bid every time it goes up? It sat below the top bid for most of the day, that's the part I find strange. In the pic I've attached below, the sharesies bid is sitting below the top bid (as it was for most of the day), it's also sitting below the last offer that was matched.


cancan.jpg