Official Market Transactions

• for the best: they do not have a limit of price. They rare executed at the best possible price. These type of orders are usually not recommended to avoid sudden surprises as in reference to unexpected prices.
• Limited: it has a concrete price from which above it you cannot buy or from under it you cannot sell.
• Al Haran: it is done at the average price of all the operations done of each security during the session.

The price of a security, also known as exchange or quotation is fixed at the point in which the supply and demand coincide. This operation known as transaction is done in a different way in accordance to the country, in which the stock exchange market is. The purchase and sales orders of a determined security.

In an application the orders are married instead of doing them apart from the group or at the continuous market.

In the group transactions, the price is formed in a zone that only the representatives of the societies market precinct, and it is denominated as the floor.

The floor is formed by groups integrated by agents or their representatives. The groups have a determined period of time dedicated to one or more securities. In the group transactions, the negotiations are done in loud voice as in an auction. Each participant of the group that has orders of a determined value, yells announcing the price and number of securities that he is willing to buy or sell. If there is no counterpart he can rise the price if he is willing to buy, or reduce it if he is willing to sell. If someone replies “give it” or “take it”  which means that you can reach an agreement. The give means that someone is willing to sell and the take means that someone is willing to buy at the price previously spoken.

If the one that speaks does not say a quantity, that who gives an answer of give or take can decide on the quantity. So that by not saying the quantity it supposes that the buyer or the vendor have no limits.

If someone out speaks the word give at a lower price, it annuls the former offer; if the speaker says the word take at a higher price, all the lower price demands will be nullified. In no case can they manifest their positions of nuying at a lower price, nor the sales at a higher price after the already made public former proposal.

The words or take in the same sense as the manifested, mean that there is more purchases or vendors, respectively to the price proposed. The words give or take manifested as a counterpart from the outspoken positions must be accompanied by the expression of the number of securities that you wish to buy or sell. When the counterpart coincides with the present offer, the words give and take are substituted by the word “done” and the business is then closed. When the counterpart is less than the present offer to make up a price and to be able to close the operation, it must reach at least a determined percentage of the same ( usually 20%). All the manifested positions until the moment of appearance of the counterpart must be attended in an identical proportion, and the word done will mean the end of each one of the operations. None of the manifested positions before the appearance of the counterpart may be left without being partially or totally attended. The positions manifested after will not be attended, as long as the positions previous to the counterpart are not covered.

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