Small bids ???

  1. 253
    Posts

    Who are these people who buy (for example) 206 shares in a stock at $2.54 each ?. The fees for getting in and out of the stock will eat heavily (if not completely) into any chance of profits ?

    Is there a way to play the market without paying fees for purchasing and selling a stock ? Maybe brokers have this luxury, if so, how much per year to be a broker ?

    Can anyone shed some light on this because it's confusing me. Thanks.

  2. 6.7k
    Posts

    hi ricki

    what stock is it?

    one explanation is that it could be for an SPP.

    you only need to buy $500 worth to register on the company nbooks.

    $500 is the minimum buy (most of the time)

  3. 253
    Posts

    JST - but I have seen many small bids, and unless they are somehow getting around the fees for purchasing/selling a stock - there must be another reason for purchase (possibly as you have outlined).

    But also, is there a way around paying fees for purchasing/selling stocks ?. I am with etrade and average about $30 for either a sell or a buy.

    thanks.

  4. 527
    Posts

    What you are seeing could be the remainder of an incomplete order. It works like this ... the $30 brokerage (Etrade, Commsec, etc) is applied to the first part of a transaction which may not "swallow" your entire bid ... it could take 2 or even a few "chomps" before your bid is transacted .. eg. if I bid to buy 1000 shares today, but only 850 are processed today, the remaining 150 can be processed at no charge (for up to 30 days I think) as the brokerage has been levied on the first (albeit incomplete) transaction. If the market moves away from my bid I may wish to follow and reposition the remainder 150 to ensure transaction (especially if the "brokerage-already-paid" time is about to expire).

    It is possible to deliberately set up a trade (knowing from the depth, etc) it will not be completed, after partial transaction, quickly move the trade away from market, then watch for another suitable "chomp", move back, etc. ... in this way only one brokerage is paid for a series of trades. Such a strategy would only work in certain situations - some of which are complicated if it is a Margin Loan A/C as 2 different dept's could be involved and banking transaction fees could be levied on what is still regarded by the trading dept. as a single trade that was filled over a series of days. But, I believe that such fees can also be avoided if you inform that dept. (BTW I am with Commsec)

  5. 648
    Posts

    Sometimes small bids (often odd numbers and repeated orders) are generated by bots (automated trading programs) testing buyers and sellers and trying to trip conditional orders.

    I beileve Mac Bank is one who uses them .

  6. 938
    Posts

    G'day Ricky old pork sausage,I just looked JST up again and volumes on market depth & historical sales.

    5 ,8000, 2000 ,1227, 12273,5371,34271,5844,4885

    I feel it may hold tomorrow although volume is tapering.

    I pay $49.50 full $ get info daiyly. Cheers, Norm

  7. 9.3k
    Posts

    Ricky

    Not sure what Etrade account you have, but if you are on the standard account you can only see the last 10 sales.

    If you want a better idea of the whole day's sales, and don't have access, www.stocknessmonster.com is a great freebie!

    Laters

    saffa

Your browser is too old for TopStocks and not secure. Please update your browser