Why is the open value different to yesterday's close? | Forex Factory

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Why is the open value different to yesterday's close?

  • #1
  • First Post: Jan 18, 2010 3:14am Jan 18, 2010 3:14am
Hi,

The difference of one day's open compared to the previous is really starting to be a problem for me.

If I have an indicator giving me a buy signal from a daily tick (i.e. a closing value), then when I go to actually buy the shares in the morning, the price may have changed y 2-3%.

How can this happen since the market is closed between these two times?
  • #2
  • Jan 18, 2010 3:29am Jan 18, 2010 3:29am
Quoting quibowibbler
Hi,

The difference of one day's open compared to the previous is really starting to be a problem for me.

If I have an indicator giving me a buy signal from a daily tick (i.e. a closing value), then when I go to actually buy the shares in the morning, the price may have changed y 2-3%.

How can this happen since the market is closed between these two times?

That will be because of the time at which your broker opens their platform which is often several hours after trading actually restarted in New Zeland after the Friday close.....during the week there should be no gaps
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  • #3
  • Jan 18, 2010 3:48am Jan 18, 2010 3:48am
I trade individual shares in the FTSE market - wouldn't these be able to trade only during FTSE trading hours though? ANd I'm definately seeing changes during the week.
  • #4
  • Jan 18, 2010 5:16am Jan 18, 2010 5:16am
Quoting quibowibbler
I trade individual shares in the FTSE market - wouldn't these be able to trade only during FTSE trading hours though? ANd I'm definately seeing changes during the week.

LOL - this is FOREX Factory.....not FTSE Factory.....
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  • #5
  • Jan 18, 2010 9:07am Jan 18, 2010 9:07am
Quoting quibowibbler
I trade individual shares in the FTSE market - wouldn't these be able to trade only during FTSE trading hours though? ANd I'm definately seeing changes during the week.
Islander is only partially correct. Often market prices will change irrationally overnight due to unforseen circumstances.

For example, at Stockport market, which is open on a Thurday and a Saturday, bananas fluctuated wildly last week due to frost damage. Not only that, but a clumsy market trader reversed his van over several boxes and crushed some of them.
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  • #6
  • Last Post: Jan 18, 2010 9:29am Jan 18, 2010 9:29am
Quoting smikester
Islander is only partially correct. Often market prices will change irrationally overnight due to unforseen circumstances.

For example, at Stockport market, which is open on a Thurday and a Saturday, bananas fluctuated wildly last week due to frost damage. Not only that, but a clumsy market trader reversed his van over several boxes and crushed some of them.

MM - so I guess that you're talking about Sundae Trading rather than the normal vanilla type of Sunday Trading.....
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