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To you long experienced traders out there, can you answer a question that I
have never received a satisfactory answer to?
"How is the opening price on the SPfutures established?"
For example, the overnight session may close 2.20 pts above the previous
day session close. However, the opening of the day session a few minutes
later finds it at 4.80. I cannot believe that anyone has really placed a
BUY order 2.6 points above close, nor that someone has placed a SELL order
up there in hopes that someone on opng is stupid enought to take it. So,
what is the basis for setting the opng price and who does it.
If it is arbitrarily set by a floor manager, how does the SEC controll his
possible collaboration with overnight interests? Can't believe that would
be allowed either.
Jerry
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