Hi guys,
I'm a new inexperienced PI, just started mid 2020.
I've held @KLR for a while now and today got a notification about the price going down so I checked it out. I saw this on LSE:
Can anyone explain why there are so many trades going in and out for almost identical amounts just seconds apart?
Thanks in advance!
Gareth,
That looks a bit like some of my buys and sells through DeGiro. I often set a buy or sell price and leave it for a day. The record was, I think, seven mini deals including at least two of a single share, to sell my holding of BYGGP on the Stockholm exchange. I've never had that with a British stockbroker, but it works and DeGiro will get me more than my limit when available. Hope that helps.
You need to understand trade types. These are shown on the RHS. O trades are of the type that you do through your broker and there are only 2 of these. All the rest are A trades which means they take place on the order book automatically. A large proportion of these are generated by computer algorithms - 'bots'.
To give an example someone wants to sell 800 shares at the bid price shown and there are more than that number lined up, the earliest lots being for 200, 250, 250, 100. Those will be taken out and the list you see will show 4 trades for those volumes within a fraction of a second of each other.
This is a quick intro but I'm sure there are many others:
https://www.proactiveinvestors.co.uk/companies/news/81/idiots-guide-to-the-london-stock-exchanges-setsmm-0379.html
