DingoBorat
Slim
"Now think the other way around buyer wants seller at 35 cents and seller wants buyer at 41.5 cents and actual price is 37.5 cents. Does that make sense??"So you want to say another seller was there on 35 and 35.5 cents as well while there was a buyer for 41.5 cents and actual price was 37.5
So why someone will pay 41.5 cents when other is selling at 35 cents. And why the last person bought at 37.5 cents when stock was available at 35 cents.
Now think the other way around buyer wants seller at 35 cents and seller wants buyer at 41.5 cents and actual price is 37.5 cents. Does that make sense??
That makes perfect sense Rgupta, that a buyer wants to buy for less and a seller sell for more..
But that's not how it works in the opening and closing auctions.
Buyers are buyers and sellers are stupid...

The format of the system, doesn't change, for these auctions.
It's a bit like "normal" everyday auctions, if there are a lot of buyers, prepared to pay more, the price will go up.
If the seller (in the case of the ASX, it's multiple) is willing to accept a lower price, it will go down (especially if there are few buyers).
The indicative price and overhang either way (negative or positive volume) is the buys and sells matched off against each other.
Maybe this can explain it better for you.
As the title says, it can be confusing, until you understand what's going on.

Understanding the ASX opening and closing auctions - The Rivkin Report
The opening and closing auctions can be confusing to understand. We explain these in detail.
Last edited: