Limit Order during trading halt

[wbosher]

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]

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]

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.

[777]

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]

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.

[sharer]

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.

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]

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.

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.