To participate in the double call auction, the player must specify the maximum price he will buy at or the minimum price he will sell at. After the three-day period, an IPO price will be calculated. At this point, the second stage will occur with the stock or future available for purchase or shorting at the IPO price all day by all traders. Following this day, regular trading with automated market maker will commence.
Why can one purchase stocks during this initial IPO phase? I got burned on this when I set my bid and ask and someone shorted shares to me. I mean, I didn't get burned for much, but it was something I wasn't expecting. Is that supposed to happen?
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Why can one purchase stocks during this initial IPO phase? I got burned on this when I set my bid and ask and someone shorted shares to me. I mean, I didn't get burned for much, but it was something I wasn't expecting. Is that supposed to happen?