RE: pre market28 Nov 2019 20:22
Guilders, unless you have had level 2 before, then you probably won't/don't understand how the pre market prices on AIM are calculated.
it can be quite deceptive and misleading but is actually pretty straight forward.
Basically each stock has on average between 4 and 12 market makers which all have different prices for their own buy and sell prices. Val has 5 market makers
At 7.00am every morning their are no market makers advertising their prices and news is usually released just after 7.00am.
Each Market maker will gradually start listing their price from about 7.30am onwards and the last one or two will list their prices at about 7.58am or right on the open at 8am.
if there is no news, most market makers will stay at the same price as the previous close, but if there is news then the first market maker might list their price at 7.30am with a 50% spread (like this morning) and will probably be the only market maker displaying any prices for 10 or so minutes, so will give a highly inaccurate impression of the share price until the rest of the market makers print their prices which will narrow the spread.
basically with AIM shares, dont look at the pre market prices unless you have level 2 and can tell if the bulk of the MM's have that price , or its just one or two which will self correct at the open.