RE: Toyota..What do you See?26 Sep 2019 18:44
It's trying to pin down which trades are real and price forming (ie me and you buying 500k shares at 4.50p for example - this is a real and actual purchase of shares at 4.50p and this trade contributes in its own way to determining the touch price we see on screen)...non-forming price transactions could be anything from error corrections, compression trades (multiple trades offset against a large reported trade) and other anomalies that tend not to make a real contribution to determining the touch price
it's about ensuring that the current price we see second by second is the real and actual price that reflects demand and supply - price discovery mechanism..sometimes the system is bombarded with HFT algo trades split up into small parcel with the system maybe failing to tie them all together
that's a poor explanation cos i'm ill but in essence the price we see must be an accurate reflection of the day's buying and selling at various prices..without this accuracy we would have no idea what the real price is
i'm wittering now! it's a magical process that my tiny brain just cannot fathom