Spike in share price when market starts

#1
Hi Guys,
I am new to this trading field.
I have noticed that for some shares there is a SPIKE in price (rise/fall) when market opens.
What causes this?
Is it due to the After market orders on that particular stock, or is it due to some thing else?

Thanks,
Pavan
 

bunny

Well-Known Member
#2
It is due to the orders placed by traders just before the trading begins. The exchange's computers matches all orders and the first trade occurs at the price which will execute maximum no. of orders from the log. After orders matching that price are executed, then subsequent order executions will be as per the order book.
 

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