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To whom it may concern:
The question of what is closing and settle price? I am of the impression
that the closing price is the price which is punched in on the last trade
effected on the closing bell. The settle price is the price at which the
exchange effective settled that market based upon all closing activity and
the final trade effected. I could be wrong. But that is my understanding
of close and settle prices.
Regards
Al
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> From: T-BONDTRADER <T-BONDTRADER@xxxxxxx>
> To: Mark Brown <markbrown@xxxxxxxxxxxxx>; Dejan Corovic
<Dejan.Corovic@xxxxxxxxxxxxxx>; Omega-List Forum <omega-list@xxxxxxxxxx>
> Subject: Re: Please answer the two questions!
> Date: Wednesday, September 23, 1998 9:15 AM
>
> Mark Brown -
>
> This list knows only too well your capacity for rambling on and on and
on,
> in illiterate fashion, but, bearing in mind your first sentence, do you
> actually have an answer to the question?
>
> Bill Eykyn
>
>
>
> >>Hi,
> >>
> >>I hope that somebody can enlight me on the following two issues:
> >>
> >>1. What is the difference between the 'Close' and 'Settle' price?
> >> How is 'Close' price actually arrived at?
> >
> >
>
>
> >I'll enjoy answering this one.
>
> >If you have a system that generates a buy on
> >close. And that close was the Friday of Super Bowl Sunday and you had a
> >Bond model that gave you a buy on that close you would have learned what
I
> >have learned about all of this. I knew that I was getting close to a
buy
> on
> >the bonds that Friday and I did some calculations and I was definitely
> going
> >to get a buy on the close of the bonds. So just prior to the close of
the
> >bonds I went in and got long. Sure enough when the bonds closed Friday
I
> >did get a buy arrow that poped up just as predicted. So the other
markets
> >closed and we all went home for the weekend. Weekend over they notice
the
> >power had gone off in the building, they called me, I decided to stay
home
> >that day. They said hey the buy arrow on the bonds is missing on the
Ned
> >Davis system and the TS. I said no way, I still have mine. Now this
> >wouldn't have been so important but the bonds had crashed and we were in
a
> >world of hurt. So I rolled out of bed and crawled to my trading room
and
> >there I had a multitude of monitors all showing buy arrow still there
from
> >the previous Friday close. With me so far? OK I'm telling them at work
> >your nuts and your all kidding me, they claim no. So I noticed that the
> >bonds had settled lower than they had closed buy I think two ticks. I
got
> >to thinking, they told me the power went off so I emulated that by
closing
> >charting in Omega TS and leaving the server running. WELL! to my
surprise
> >no buy arrow appeared any more! It had disappeared just like they had
all
> >told me, I couldn't believe that our other software product had given
the
> >exact same results. So moral is from now on if we get a signal on the
> >closing bar of the day on a system we wait for the settlement and them
> close
> >and reopen to make sure its a valid system signal. If it is on the
close
> of
> >a Friday we wait for Sunday night trading to place the order. That is
the
> >policy now in place. That lesson cost me about 18% this year on that
one
> >model, if it weren't such a good system I'd been doomed this year from
that
> >one trade. I will also comment you only find these things out when you
are
> >actually using the program to trade and you have money riding on the
> >software, then and only then does every little detail about the software
> >matter so much to you. MB
> >
>
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