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Online Share Trading

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Why??

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Not applicable
Can anyone please explain to me why anyone would buy just 1 share? Or sell just 1? Surely it does not make any economic sense as tax and ust are levied on such transactions. Anyone, please!!!
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5 REPLIES 5
DCTrader
Super Contributor
Just a thought... I'm a seller with 1,000 shares with an offer in at 100c. The nearest buyer is sitting at 95c. I sell one of my shares at 95c so the buyer's bid gets hit and now he has to pay brokerage for that trade even though it was only share. Because brokerage is only charged once per day in a direction, this incentivises the buyer to trade the remainder of my shares at 100c. It could also work the other way, with the buyer buying 1 share 1t 100c and then waiting at 95c.
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Not applicable
My personal belief is that it is an attempt to trigger stoplosses!
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murgs
Contributor
I also think that more often that not, it's an effort to trigger stop losses. It doesn't only happen with KIO but with many Top40 shares. In the case of KIO today some 1 & 2 share trades have taken place at different times to preceding or following trades and have dropped the share price by R1 - R2. So they cannot be left over from a larger trade in my opinion.
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Pam_1
Regular Contributor
Suppose it is the pro's bottom fishing for stop losses, is that an indication that the share reached its bottom turning point in the latest price cycle? Time to expect a little rally?
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HungryPunter
Regular Contributor
You will find those small trades happen just before a 15min on the clock. This is because some large traders simply follow the direction of the trade (They do not pay brokerage, or not as much as we do). They trade using the 15 minute direction. So if the trade is moving down from 15 minutes back, they sell and so on and so forth. I observed this practice quite a bit and it have become quite agitated when I have a SSF position and start finding these guys pushing the price down. I once or twice did the oposite just to see and found the trade following the 15minute pulse followed blindly this direction. Just my observation.
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