Official Transaction Example

For example, an agent or its representative offer to sell (give) shares of a determined company at the price of 305, another offers to buy (take) at a price of 294 and a third party also offers to buy (take), but At a price of 300. If the vendor answers done, it means that he accepts to reduce the first offer from 305 to 300.

When an agent manifests its position, it must be done for the minimum price of securities. These minimums are fixed by the market. The exchanges are expressed in the currency of the country in which the transaction is made. When the quotations suffer changes, there are some minimums that are regulated by the present norms.

Variations in changes cannot surpass a percentage over the closing price of the former day, which is regulated by the present norm. The variation that the changes can experiment in a session are limited to avoid speculative maneuvers. This variation, to the low or to the rise, can be, as a maximum of a determined percentage. In this way, when the variation surpasses the percentage of the change of the closing price of the former day, those responsible for the group may annul the change.

If there is an annulment, the price is published as money position (M). If the variation is to the rise or as paper position (P), if the variation is to the low.

There are stock exchange markets that allow a second round during each session. In this case, because in the second round there may be another maximum variation of the percentage, the total maximum variation that a security can experiment in a session is of the double of that percentage, to the rise or to the low.

Now-a-days, most of the stock exchange markets of the world have continuous transactions that also receives the denomination of continuous markets. In this way, a same security may be object of transactions during all the session and because of it there are no limits in the variations. For this to be possible, you have to know at all moments the prices of the best offers and demands and the last change done.

when the counterpart of a declared position does not cover as minimum a determined percentage that is regulated by the present norm, usually of 20%, the operation may be nullified . In this case, the price is published as paper position (p) or as money position (m), due that the offer of securities surpasses the demand, or vice-versa, to the spoken price. For the chance to be marked the of 20% has to be surpassed.

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