AIM price movements (bots in control)?

Monday, Aug 12 2019 by
5

I'm still relatively new to investing in individual stocks, as I'm learning I'm fascinated (frustrated?) by the price movements of some AIM stocks I hold.

What I'm noticing is a fairly large swing in price on very little volume. Here's an example from today - a 3p swing (down) on volume of under 200 - this pattern repeated multiple times today already (i.e. on each movement up, the price is abruptly brought down by an 'A' trade on very little volume).

I'm not overly concerned, and accept this is all likely fairly normal - however, any insight that anyone can offer to help me understand 'how MM's work' would be appreciated.

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4 Posts on this Thread show/hide all

Nicowilson Mon 3:37pm 1 of 4
2

I am guessing here but I suspect that the two trades of 163 and 161 are below the EMS (Exchange Market Size) for this stock and therefore are not showing representative prices

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Nick Ray Mon 4:45pm 2 of 4
3

If the order book is very thin you can sometimes move the price quite a long way by gobbling up the nearest bids/offers. The AT trades are done by people with DMA access who can watch the order book and consume such opportunities as they arise. Probably the the two transactions were by the same person picking up all the stock available at that price.

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heregoes18 Mon 8:36pm 3 of 4

Thanks for the replies. The second is intriguing - as this is a period of no news flow for this stock I was wondering if this type of behaviour was a result of small amounts of cheaper shares being mopped up in the background over the quiet period - wishful thinking?

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ambrosia Mon 10:22pm 4 of 4
3

Ive noticed it myself, there was a few stocks with sharp declines today with very little volume, Barclays, Property Franchise, clipper-logistics, mercia-asset-management, IG

(although I'm not surprised IG has gone down, lots of stuff about gambling addictions in the media at the moment and with a populist prime minister in power)

One for Jack Corsellis our technical guru I think

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