Limit Order during trading halt

[wbosher]

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.

[shasta]

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.

Im pretty sure, with a trading halt all buy/sell bids are withdrawn.

[wbosher]

Hmmm, I've been watching the depth during the day and it's still moving. Buyers and sellers are lowering their prices.

[shasta]

Hmmm, I've been watching the depth during the day and it's still moving. Buyers and sellers are lowering their prices.

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]

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]

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/educ...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]

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/educ...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]

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]

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]

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.