Skip to Content
scroll

Do buy and sell orders get “tidied up” when the market opens?

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked

Do buy and sell orders get “tidied up” when the market opens?

Before the market opened on Tuesday I had a look at the buyers and sellers list for Macquarie. While most of the sellers had prices of $160 and above there were some shares for sale at $150, so I put in a buy order at $150. When I had a look after the market had been open for about 10 minutes the shares offered at $150 in the sellers list were gone. Did I just get beaten by buyers who spotted them and put their buy orders in earlier than I did, or was there some sort of "tidying up" that removed the sell orders because the prices were quite a bit lower than the others up for sale? Cheers, Carl

Answer

Hi Carl,

An ASX algorithm kicks into gear on the open, the market simply averages the buyers and sellers to generate the opening price which encompasses the greatest volume, then bids and offers match off throughout the day in usual fashion before the match out which is the same as the opening sequence before the market closes.

Hence if your bidding $150 and the open print is $151 you don’t participate and simply remain as a bid in the market  but if you’re buying at $152 you get set at $151. If you have a buy order in and the  stock opens at the same price as your buy order and you don’t get filled, it means that not enough volume trades at that price to include your order. The orders that were entered before yours would get filled first.

 

image description

Relevant suggested news and content from the site

Back to top