Bursa New Trading System – Part 2
Filed Under (Bursa News) by Webmaster on 21-11-2008
Tagged Under : afternoon trading, bts, bursa new trading system, bursa trade securities, closing, morning trading, opening, pre-closing, pre-opening, price, trading at last. algorithm
In our last post about Bursa new trading system called BTS or Bursa Trade Securities, we informed that there are much more transparent methods of calculating the opening and closing price. Today we will look at what it means.
There are two trading session per day.
(a) Morning trading session
8.30am to 9.00am – pre opening
9.00am – opening
9.00am to 12.15pm – continuous trading
12.15am to 12.20pm – pre closing
12.20pm – closing
12.20pm to 12.30pm – trading at last
Bursa Morning Trading Session
(b) Afternoon trading session
2.00pm to 2.30pm – pre opening
2.30pm – opening
2.30pm to 4.45pm – continuous trading
4.45pm to 4.50pm – pre closing
4.50pm – closing
4.50pm to 5.00pm – trading at last
Bursa Afternoon Trading Session
As you can see from the above there are TWO pre-opening and TWO pre-closing period. During these period, the BTS system will find the best opening or closing price based on a set of algorithm. During these two periods there will not be any matching done. Dealer’s representative can only input their buy or sell order during these two periods.
Once the opening price has been decided, that will be the Opening price. Same goes with the closing price. However there is a difference for the closing price. You will notice that there is period called Trading-At-Last for both the morning and afternoon session. During Trading-At-Last period there will not be any movement of the price. The price is fixed at the closing price and customers can be sure that he/she will get the same price as the closing price during this period. This period is also for institutional clients to close their position at a fixed price rather the current trading system whereby someone can manipulate the price by keying a market buy or sell to change the closing price up or down drastically.
In the next Pro Trade Shares posting, we will explain the algorithm involved in the deciding the matching price in BTS.
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