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I am curious about how the opening is "decided on". Would be interested
in present/past floor brokers drawing a picture for me:
You are standing there before the market opens with some limit orders
and some market orders. I assume the market orders get the ball
rolling, but if you only had limit orders you would bid/ask based on
them? My question is: how do you know where to start bidding and
asking, particularly if everybody has market orders. based on previous
close? overnight action?
A related perhaps more practical question for the off-the-floor trader.
Where do the opening calls come from? Would they be different from
different sources? To the extent it can be generalized, are they
reliable?
Conrad Bowers
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