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Weird pricing on CQR at the close of trading.

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Weird pricing on CQR at the close of trading.

On Wednesday I had an order for CQR in the market at $3.40 which didn't get filled because the shares stayed close to $3.42 all day, but when I looked at the shares at 4pm just as the market was closing there were some being offered at prices ranging from $3.17 to $3.30 or more. So I thought I'd try my luck and I amended my order to $3.25. As I suspected the order didn't go through and a short while later the shares being offered were closer to $3.40. Where did these weird prices at the close come from and why did they then disappear? And if you amend an order during the match would it get filled if there are shares available at the new price you've entered? Cheers, Carl

Answer

Hi Carl,

The ‘Match out’ between 4-4.10pm marries up all buyers, with all sellers, and the price matches/closes at the price where the volume & price balances (or matches). If a trader has a price in to buy at say $3.60 in the match, but the stock closes at $3.40, the trader will be filled at $3.40. If they have a limit price of $3.39 they will not get filled.  The match is where the most volume on stocks now gets done. If we want to ensure we get filled at the closing price, we will place an order in well above market if we are buying, and well below if we are selling. NB: This is in liquid stocks only. The prices would disappear because they have been filled on the close.

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