Regarding Gap

[akk100]

I have a question in my mind since long. Please help me for this.
This is regarding the gap which occurs as soon as market opens in morning.

Suppose today Nifty closed at 5970. I think tomorrow Nifty will open with a gap say 6000. I go to my trading site (sharekhan, icicidirect etc) after market closed and put a limit order to buy a Nifty at 5980. Fortunately Nifty opens next day at 6000. My question is, will I be able to get the Nifty at 5980? (will my order be executed at 5980?) If not, why? Then who are those who get benefits from Gap? The Brokers? Big trading companies? FIIs?

Or if I put a limit order above 6000, say 6010, then will I be able to get the Nifty at 6000?

Please reply.

 

[VIKAS 21]

I have a question in my mind since long. Please help me for this.
This is regarding the gap which occurs as soon as market opens in morning.

Suppose today Nifty closed at 5970. I think tomorrow Nifty will open with a gap say 6000. I go to my trading site (sharekhan, icicidirect etc) after market closed and put a limit order to buy a Nifty at 5980. Fortunately Nifty opens next day at 6000. My question is, will I be able to get the Nifty at 5980? (will my order be executed at 5980?) If not, why? Then who are those who get benefits from Gap? The Brokers? Big trading companies? FIIs?

Or if I put a limit order above 6000, say 6010, then will I be able to get the Nifty at 6000?

Please reply.

You will not be able to buy it at 5980 as we can't trade for first 15 min, only brokers trade for that time..

Retailers can trade only after 9.15 am

If you put a limit order of buying nifty at 6010 then it means it's the max price you wanna buy , so if the nifty is at 6000 your order will be executed.

But if you put a stop loss buy order at 6010 then it will only be executed when index reach at 6010 mark.

 

[DanPickUp]

You will not be able to buy it at 5980 as we can't trade for first 15 min, only brokers trade for that time..

Retailers can trade only after 9.15 am

If you put a limit order of buying nifty at 6010 then it means it's the max price you wanna buy , so if the nifty is at 6000 your order will be executed.

But if you put a stop loss buy order at 6010 then it will only be executed when index reach at 6010 mark.

Do you know why it is the way it is in your market? or with other words: Why can retail traders only enter 15min after opening? For me in sounds like a cheating game.

 

[Bewinner]

Do you know why it is the way it is in your market? or with other words: Why can retail traders only enter 15min after opening? For me in sounds like a cheating game.

yes exactly DAN....
But dont know the reason...

 

[timepass]

Do you know why it is the way it is in your market? or with other words: Why can retail traders only enter 15min after opening? For me in sounds like a cheating game.

The "pre-open" (9-9.15am) is open to the brokers and institutions (I think). It helps to reduce the gaps (gap up or down). Those who remember the times before this procedure was implemented will remember that it has helped to reduce the gaps.

 

[DanPickUp]

The "pre-open" (9-9.15am) is open to the brokers and institutions (I think). It helps to reduce the gaps (gap up or down). Those who remember the times before this procedure was implemented will remember that it has helped to reduce the gaps.

Gapps occur when there are lots of buyers or sellers on new levels. As those institutes first have access to the market, could it be that they have to work out first the overnight income orders, place and fill them and then decide on what level market will open according to this orders?

 

[trendcatcher123]

gaps also depend on volatility & liquidity of the stock.
higher the volatility & lesser the liquidity, more the occurrence of gaps and vice versa!
one cn avoid such stocks as overnite carry trades!

 

[akk100]

THANKS A LOT EVERYBODY. Appreciated

 

[newtrader2012]

That mean no official trading have been made at that point..thats why it is a GAP

 

[bunny]

To know how price gapping is done, you must know how the exchange decides the open price.

All the buy and sell orders to check which price shall facilitate the maximum transactions.