Opening Auction

[ellist]

Hi,

Recently started trading CFD indexes and individual stocks, DMA. Can anyone tell me how the opening and closing auctions work and how they can be turned to your advantage?

Thanks,
Tim.

 

[midiuk]

as far as I'm awre you as individual trader will not be allowed to participate in Opening or Closing Auctions anyway ... only market makers etc are in it;

But in general Aucton principle is prety simple and it consists of two main periods (there can be more than two in some cases where Auction extention periods are reqired). so first there is Auction Call Period aprox 10 minutes (closing aprox 5 min) and then there is Auction Match Period aprox 30 seconds. During Call period - orders are entered into the Order Books, during this period the orders are not automaticaly executed/crossed even if there is a match bid/ask. Only Market Orders and Limit orders are allowed; Once it is done then the Match period kicks in and once it is activated orders can not be changed/deleted etc during those 30 seconds ish, as the orders are crossed/executed;

Hope That hels ... and btw good luck with your venture into the trading ... take it slow and easy .. 😎

 

[ellist]

as far as I'm awre you as individual trader will not be allowed to participate in Opening or Closing Auctions anyway ... only market makers etc are in it;

But in general Aucton principle is prety simple and it consists of two main periods (there can be more than two in some cases where Auction extention periods are reqired). so first there is Auction Call Period aprox 10 minutes (closing aprox 5 min) and then there is Auction Match Period aprox 30 seconds. During Call period - orders are entered into the Order Books, during this period the orders are not automaticaly executed/crossed even if there is a match bid/ask. Only Market Orders and Limit orders are allowed; Once it is done then the Match period kicks in and once it is activated orders can not be changed/deleted etc during those 30 seconds ish, as the orders are crossed/executed;

Hope That hels ... and btw good luck with your venture into the trading ... take it slow and easy .. 😎

Thanks for that...looks like I'd better stick to the simple stuff, huh? :!:

 

[midiuk]

For sure you will save yourself some money for keeping things stupid simple ... 👍

 

[honestsid]

Some brokers will now, (2009), grant access to auction periods for us normal punters, you will need to have level 2 access DMA (Direct market access). I know IG Markets offer the service with CFD's to UK markets, Interactive Brokers offer it, I think, but not for UK equities. All brokers ask that you understand what you are doing before they let you loose with DMA, you can upset the big boys if you are messing around with it, so read up well before using. It is a useful tool in the armoury! Strange things can happen … I have sold at a greater price than I was asking!

 

[96pills]

DMA surely isnt that bad?.... I dont know i jus use my broker to do all by phone no computers