[joshdance]

Originally Posted by bobcollett »

Are you saying there is no difference between the auction process as you describe and an electronic market.

That's not what I said at all.

Originally Posted by bobcollett »

Then how come , for example, the spread is 10 points in a rising market and 30 points in a falling market I believe the electronic market is manipulated .

Which market? What are you talking about?

Originally Posted by bobcollett »

Similarly, I believe a gap is often manipulation when it starts closing immediately.
I have a test for this .If the opening gap trade went through at very low volume (on the tape), e.g. 10 shares, then somebody bought and sold to himself.The electronic market does this regularly.

Why would someone buy and sell to himself without any other volume to take advantage of more price movement? When you buy and sell to yourself you don't make any money. You need someone else to manipulate for this to work, and you're talking about a situation with very low volume. So, again, I don't understand.

How is any of this relevant to actual trading?

[bobcollett]

Originally Posted by joshdance »

That's not what I said at all.



Which market? What are you talking about?



Why would someone buy and sell to himself without any other volume to take advantage of more price movement? When you buy and sell to yourself you don't make any money. You need someone else to manipulate for this to work, and you're talking about a situation with very low volume. So, again, I don't understand.

How is any of this relevant to actual trading?

Hi joshdance
My market is carefully explained on this thread no. 70

When a broker buys and sells the same deal , its called a "bookover"
He has a buyer and a seller for the same stock at the same price.Or a price at "best".
It requires no volume to post a gap trade. If there is no volume I believe the gap will close
Just my thoughts
regards
bobc

[Lornz]

Originally Posted by bobcollett »

Hi Lornz,
And if I traded Forex?
And questioned the anomolies.Would you reply that I was not watching the correct price feed.The forex price feed also has no centralised exchange. It comes from your broker. So if you have two brokers , you can get two different prices.
My original question is unanswered.
What is the difference between an auction and an electronic market?
Maybe I should change it .How do they operate an electronic market?
How do they decide on the spread?
Is there some girl sitting inside the computer pulling levers? (no pun intended)
Or is it totally automatic? If so , how is it possible to open with a gap.?.
Regards
bobc

If you don't have access to the interbank market, I wouldn't touch forex. Price discovery is virtually nonexistent.

If you trade a liquid market, there will only be a 1 tick spread -- the smallest amount possible. In less liquid markets there will be larger spread, which is set buy supply/demand. In your case, the CFD broker artificially sets the spread in order to make money.

The market can open with a gap due to electronic trading outside the open outcry.

I would suggest going to the website of the exchange in question and educate yourself about market mechanics.

I am not familiar with your specific market, but if you decide to switch to Globex trading -- buy this book:
Amazon.com: The CME Group Risk Management Handbook: Products and Applications (Wiley Finance) (9780470137710): CME Group, John W. Labuszewski, John E. Nyhoff, Richard Co, Paul E. Peterson, Leo Melamed: Books

I am signing off this thread now.