RE: UT Trades are the closing auction!22 Oct 2015 10:48
re - and despite the lower offer at the end the UT ( closing price ) was @ 74p with a large trade
say it again then, and will be the third time.
I only said the UT was a large trade and at a higher price
I have been on this trading business most likely longer than you, so I should know it by now I have to say...you "lordy".
What I know .... The UT trade is a matching trade,
My take
U trade or Uncrossing Trade. What it is
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.
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.
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 exercise 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
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
now Lord give me mercy