Closing auction

[XWolf]

Hi Simon. What is the function of the closing auction? Why would you rather (or rather not) trade shares during the closing auction?

[Champ_golfer]

For the investor to take his profits or decide to go into roll-over in sticking with the future for a while longer - another 3 months) and risk it plunging but making more over the long term Some traders gets the jitters before closeout and when they all want to sell the price dips (too many sellers) between 12-2pm and then jumps up again- strange hey.. Also the default has been set by SBFM to close-out so in order for them to close the contracts they HAVE to sell them !! changing to roll-over on 1 July luckily. Avoid selling during the closing auction bargains galore, sell a week or 2 days prior to expiry and buy mid through close-out to get the specials, just remember the new term contract future price interest element (matrix mark up) is much higher when u newly buy as there is 90 days left on it until new expiry date as you effectively pay interest on the exposure SB funds

[SimonPB]

champ, you're explaining futures close out.

Closing auction, at 4.50pm trading halts but orders are still submitted tot he JSE. Then at 5.00pm the system works out at what price level the largest volume will trade, and bingo that's the final closign trade for the day. it orevents price funnies at the close. Why would I want to trade in it, well no reason except there is great volume.