How to Trade Shares or Stocks in Bursa Malaysia

While researching more about Bursa new trading system to be launch on 1st December 2008, we found a temporary website created by Bursa Malaysia on Bursa Trade Securities or BTS. Pro Trade Shares decided to capture a snapshot for record purpose in case the website is taken down after BTS launch.

If you Google the terms Bursa Trade Securities, you will actually find a listing of the website called bursatradesecurities dot com. However when you click on that it will show a screen to say that the site has been taken down. I believe it was meant to be the original temporary website introducing the launch of BTS. I guess Bursa decided to use a shorter domain name “bursatrade dot com”.

This website has some very good resources if you want to find out more about BTS. It has the usual FAQ and also tutorial on how BTS works. The main page has a count down to the launch date. Here is the snapshot of the main page:

Bursa Trade main page

The website link is http://www.bursatrade.com/default.aspx.  This site also show some FAQ for the Derivatives market as BTS also cater to derivatives (ie. futures, options and commodities trading).

Here is the snapshot of the tutorial page for BTS.

Bursa Trade tutorial page

Like I said, the link above might not last as the website could be just a temporary site for the launch of Bursa Trade Securities which is Bursa new trading system.

In our last posting we explained the morning and afternoon trading sessions. We also mentioned the new session called Pre-Opening and Pre-Closing. Bursa new trading system will use these pre-opening and pre-closing session to calculate the Theoretical Opening Price (TOP) and Theoretical Closing Price (TCP). This is Part 3 of our introduction to Bursa New Trading System.

Part 1 was Bursa New System difference with the old system
Part 2 was about the Bursa New System Trading Session

What is the Theoretical Opening Price ?

According to Bursa defination; “The Theoretical Opening Price or TOP is the price at which the share would trade if it opens at the moment the price is calculated. TOP is calculated on a real-time basis on Pre-Opening Phase. With TOP, investores can get a better understanding of market demand and supply conditions to better plan their investment strategies.”

Basically a Dealer’s representative (Remisier or Dealer) can view via their new Bursa Trade Securities (BTS) system the TOP after the pre-opening phase. Most of us investors would not have privy to it. We have to call our remisier or dealer to check the TOP. So far we don’t have any idea how the TOP is decided but it is based on all the buy and sell order keyed-in during the pre-opening phase.

What is the Theoretical Closing Price ?

The Theoretical Closing Price is the price at which a share would trade if it stops trading at the moment the price is calculated. TCP is calculated on a real-time basis in Pre-Closing/Closing phase. As the TCP is locked in at the Trading at Last and Closing, it allows the investor to gauge the price to be traded at the Opening as well as to plan ahead with greater clarity.

During the Trading at Last phase, you can ony input buy or sell order at the price of the TOP. Therefore the price will not suddendly move up or down just before the close.

We will try to find out how the TOP and TCP are calculated and post it here in the future.

In the next posting we will show example on how trade are matched in Bursa Trade Securities System.