How are shares prices qouted in UK

TreyTzu

TreyTzu

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i am getting confused becoz American shares are in simple dollars for example
XYZ is trading at $12.50 simple enough to read

but on the London Stock Exchange they are done like this for example
XYZ is trading at 85.70p

i do not understand is the price of the stock 85 pence and 7 tenths of a penny
or is 85.70p actually suppose to be 85pounds and 70 pence

i hope you understand my question
 
TreyTzu said:
i do not understand is the price of the stock 85 pence and 7 tenths of a penny
or is 85.70p actually suppose to be 85pounds and 70 pence
Click to expand...
Almost certainly the former, as prices are quoted in pence - not in pounds and there are very few high priced UK stocks. What stock is it and I (or someone) will tell you for sure.
 
it's decimals, eg 80p and 0.7 of a p

pr £00.8070....


it used to be 1/4p for stocks under £5, 1/2p £5 -10 and 1p above £10 but the exchange decide to go decimal to try and get more orders on the order book (and more revenue) and less through market makers , only problem being that now there are ots of crappy orders at xx.07 etc but only in 100 shares.
 
TreyTzu said:
i was looking at Vectura Group PLC from FTSE250 it just closed at 80.70 so does that mean 80 pence and 7/10 of a penny
Click to expand...
Correct!
If you look at the daily range, it's 3.50p. Now, let's say for the sake of argument that the spread is 1p. If you're a day trader, you lose 1p in the vain hope of catching the other 2.5p - and that's assuming you're trading at the extreme ranges of the day! Not much opportunity for profit there. Conversely, if it closed at £80.70 and had a daily trading range of £3.50 - then, even if the spread was say, £0.10 (10p) - it would have day traders swarming all over it. As it is, it's virtually impossible to day trade and this is one of the reasons why day traders who want to trade equities tend to favour U.S. stocks in preference to U.K. stocks.
Tim.
 
foredog said:
it's decimals, eg 80p and 0.7 of a p

pr £00.8070....


it used to be 1/4p for stocks under £5, 1/2p £5 -10 and 1p above £10 but the exchange decide to go decimal to try and get more orders on the order book (and more revenue) and less through market makers , only problem being that now there are ots of crappy orders at xx.07 etc but only in 100 shares.
Click to expand...
yeah thanx
 
timsk said:
Correct!
If you look at the daily range, it's 3.50p. Now, let's say for the sake of argument that the spread is 1p. If you're a day trader, you lose 1p in the vain hope of catching the other 2.5p - and that's assuming you're trading at the extreme ranges of the day! Not much opportunity for profit there. Conversely, if it closed at £80.70 and had a daily trading range of £3.50 - then, even if the spread was say, £0.10 (10p) - it would have day traders swarming all over it. As it is, it's virtually impossible to day trade and this is one of the reasons why day traders who want to trade equities tend to favour U.S. stocks in preference to U.K. stocks.
Tim.
Click to expand...

woah thats true i never quite looked at the spread like that and how the spread can actually affect profitability
 
timsk said:
Correct!
If you look at the daily range, it's 3.50p. Now, let's say for the sake of argument that the spread is 1p. If you're a day trader, you lose 1p in the vain hope of catching the other 2.5p - and that's assuming you're trading at the extreme ranges of the day! Not much opportunity for profit there. Conversely, if it closed at £80.70 and had a daily trading range of £3.50 - then, even if the spread was say, £0.10 (10p) - it would have day traders swarming all over it. As it is, it's virtually impossible to day trade and this is one of the reasons why day traders who want to trade equities tend to favour U.S. stocks in preference to U.K. stocks.
Tim.
Click to expand...




Why cant the spread be less then a penny. RBS shares are 55.45p bid and 55.50 offer or 0.05p which is twenty times less then a 1p spread or 0.09% of the rbs shareprice


I think usa just has more traders, more money, more daytraders and public involvement and so more liquidity


USA spread is 0.1%

RBS ADR
Bid 17.66
Bid Size 500
Ask 17.69
Ask Size 500
 
SabreTT said:
Why cant the spread be less then a penny. RBS shares are 55.45p bid and 55.50 offer or 0.05p which is twenty times less then a 1p spread or 0.09% of the rbs shareprice


I think usa just has more traders, more money, more daytraders and public involvement and so more liquidity


USA spread is 0.1%

RBS ADR
Bid 17.66
Bid Size 500
Ask 17.69
Ask Size 500
Click to expand...

It was just an example "for the sake of argument". Of course spreads can be less, but few will be as tight as RBS. I've no idea what the spread on Ventura is - but you can bet your bottom dollar it's nothing like as tight as RBS's. You're correct in what you say about the liquidity of U.S. stocks though, which is another reason why they tend to be preferred by day traders. However, 'USA spread is 0.1%' is news to me and it certainly wasn't fixed when I traded U.S. stocks all last year.
 
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