The stock market can never be described as stable. It could be defined with many other words, including the usual technical jargon, but none of these could refer to stability. This is because the stocks or shares trading are actually just a reflection of what the free market really is. There are times when then trading is up and the stock market seems to be in an upswing. However, after a period of boon comes the bane. This is when the stock market dives or plunges. Sometimes, the plunge could be very serious that it could aptly be described as a crash.
When traders are always caught off guard Share market, they would naturally be unable to trade in the best manner possible. Ultimately, it would be the stock market itself that would be badly affected. However, a stock could be declared as 'pre-open'. This means that trading for that particular stock is stopped. A 'pre-open' stock is not a strange or unique phenomenon in share trading though. In fact, it happens on a daily basis. Before the opening of the stock market, it is normal for all stocks to be in a 'pre-open' mode. It is during the said stage that the buyers could make changes in their orders while the sellers may also make amendments on the prices.
It is not only before the opening of the stock market that a 'pre-open' phase for a stock could occur. There are instances when this happens even when the stock market trading is actually going on. Those who are engaged in on-line trading should be able to notice this. When traders feel that there is going to be changes to be introduced by a company whose stocks are being dealt, a 'pre-open' may be declared. With the halt in place, those who are planning to buy or sell stocks could then have time to gather information and then analyze this in order to come up with a final decision regarding their stances in trading.
If there are already existing orders being processed when the 'adjust' phase is decided, these would have to be amended Forex trading. The amendment could only be made if this does affect its position in the market in a positive manner. This is clearly meant to ensure that no entity would be able to take advantage of the situation while others are trying to survive the stock market's bad condition. The 'adjust' phase, in this regard, is a tool for regulating traders and to make sure that playing field remains level for everyone, especially when the market is not very healthy.
When the option is also not exercised because prices are low and thus will expire, the option can become worthless and the stocks will go back to the options holder. Because supply and demand has big effects on the premium prices of options, on-line trading on the options market can be very complicated and only the knowledgeable should do this.
When traders are always caught off guard Share market, they would naturally be unable to trade in the best manner possible. Ultimately, it would be the stock market itself that would be badly affected. However, a stock could be declared as 'pre-open'. This means that trading for that particular stock is stopped. A 'pre-open' stock is not a strange or unique phenomenon in share trading though. In fact, it happens on a daily basis. Before the opening of the stock market, it is normal for all stocks to be in a 'pre-open' mode. It is during the said stage that the buyers could make changes in their orders while the sellers may also make amendments on the prices.
It is not only before the opening of the stock market that a 'pre-open' phase for a stock could occur. There are instances when this happens even when the stock market trading is actually going on. Those who are engaged in on-line trading should be able to notice this. When traders feel that there is going to be changes to be introduced by a company whose stocks are being dealt, a 'pre-open' may be declared. With the halt in place, those who are planning to buy or sell stocks could then have time to gather information and then analyze this in order to come up with a final decision regarding their stances in trading.
If there are already existing orders being processed when the 'adjust' phase is decided, these would have to be amended Forex trading. The amendment could only be made if this does affect its position in the market in a positive manner. This is clearly meant to ensure that no entity would be able to take advantage of the situation while others are trying to survive the stock market's bad condition. The 'adjust' phase, in this regard, is a tool for regulating traders and to make sure that playing field remains level for everyone, especially when the market is not very healthy.
When the option is also not exercised because prices are low and thus will expire, the option can become worthless and the stocks will go back to the options holder. Because supply and demand has big effects on the premium prices of options, on-line trading on the options market can be very complicated and only the knowledgeable should do this.
About the Author:
Want to find out more about Share market, then visit Megan Steph's site on how to choose the best Shares for your needs.
No comments:
Post a Comment