What really happens at 4.30 when the market closes is the "closing auction" ( if there are any potential trades left on the book), anyone at this point with Direct Market Access including joe public can enter their bids/offers for the stock, from here lets call them buys and sells, its easier. What the SETS system is trying to do is give the official closing MID price for the days trading.
The participants have 5 minutes to enter what price they will pay for or be prepared to sell their stock for at this point, no-one is trading here, just entering. Furthermore, their entries have to be within 5% of the last AT trade of the day. The last AT trade was at 16.5p, so the range for the entries of proposed buys and sells must fall between 15.675 - 17.325p.
After 5 mins and all the entries are in, the SETS computer swings into action, and what it does is calculate from the entries the HIGHEST VOLUME trades that can be made, the MOST shares it can UNCROSS from one side of the book to the other. It is literally "matching" any trade that will trade at the prices on the book, if you see what I mean? This little excesise takes up to 30 secs above the 5 min auction.
The resultant figure becomes the UT ( uncrossing Trade) for the day and the official days closing MID price...which in our example .. 16.35.14..... 1750000 @ 17p....UT.
So the UT you see every evening at something like 16.35.+30secs is NOT a BUY, is NOT a SELL.. but half and half, it is a Volume figure. It is recorded as a buy or sell like all trades are: a guess based on which side of the "last mid" it is.
The 17p official closing price is then taken forward to the OPENING auction at 7.50am the next day where the city johnnies do the whole auction thing again until the 8.00am open.
Wids you seem to be wise to the market can you pls explain what an uncrossed trade is what a deletion means and special conditions apply I am sorry to ask you however you seem to be very wise and I am trying to learn more on trading in the market without losing everything I only have around 10000 half in Lloyds and now 4000 in crest nick I bought on Wednesday (good move) Lloyd's is currently holding me back on price increase however my calculations tell me its better to own the bank with better dividends than to have money in the bank earning nothing and yes it can be a rocky road but much more fun if one has the bottle for risk I personally think fortune favors the brave most very successful entrepreneurs go bust a couple of times before hitting it right these are the people that take risks and create jobs they are the life blood of our economy just a thought because its late and I would like a piece of your wisdom
I'll forgive anyone who doesn't read the Lisbon treaty, it ain't a page turner believe me...I was just interested in seeing what it actually says about 50 as I wasn't sure what to believe given all the nonsense going on.
Spot on HP. If you 'll forgive me I won't be reading the Lisbon Treaty..I'll take your word for it..lol...I don't doubt it was drawn up to make it as tortuous a process as possible. We'll forget it's in progress.
I have to say...what a fantastic win for Wales. They deserved it too. They are the top scorers in the tournament.
What are your prefered indicators? I have had some success in the past using three moving averages and fibonacci for posible buy and sell points. rsi and macd always seem too far behind the initial price movement somehow. It cost me a fortune mostly so gave it up as a bad job! I enjoy your posts keep it up!
Thanks for the comment. Held loads of shares few years back mainly Oil stocks and miners, Lloyds & RBS. Not a believer in "long term" because you could find yourself the wrong side of the investment cycle and these are not "normal times" Sold the lot, went to cash. Had a rethink. Reshuffled the way I approached making money, rather than "invest & forget" go more active. The reason you see me on Lloyds only is because I only trade Lloyds. Apply certain rules of entry and exit. Share trading is boring. Forex is my main interest, it taught me charting (paid) by Americans. It's fast, more volitility, and exciting. Precious metals gold silver, yes, the physical stuff. Do not store in a bank, they may steal it, or the government. There's otherways to hide and store. The US government nicked it in 1933 from safe deposit boxes in US banks and made it illegal to own.....anyway, that's how important gold is in hard times. Another thing you have to remember is the "value" of your currency, what will the puchasing power be?...inflation ect. After WW2 stocks, money, was worthless. Gold and silver plus cigarettes was the money of the day. The financial system worldwide is in trouble, a race to devalue currencies to stay competitive, then you have CBs with forever money bazookas.
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