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The opening call varies from market to market, but in general it is the consensus opinion as to how the market will open.
Usually, there is some indication on DTN, Reuters or other data service. Keep in mind that the OC is only an opinion; it is
usually correct, but wrong often enough to make even large, experienced locals wary. Also, it often changes as the opening bell
approaches and new opinions from other players enter the picture. Often there is some news item driving the OC and it is
important to know what the public considers salient at the opening bell.
As to avoiding gap openings, if the market gaps open, it gaps open. There is no avoiding it if there is nobody willing to trade
opposite you in the interval between yesterday's close and today's opening. There are two things you can do to avoid gap
openings. First, don't go into a report day with a position on. Second, often you can hedge your position in a related market
in Project A or other electronic overnight contract.
Good Trading -- Jim Carson
kevin sheen wrote:
> I have a question about opening call.
> I strived to avoid gap opening when I tried to enter market before open.
> A few days ago,,,,I was putting an order for a market which doesn't have night session before it opened.
> I just asked the broker if I could avoid gap open,,,he yelled at some of his peer and found out the would-be opening price.
> I wonder how this can be done,,,,and if it is always possible to know the opening price before hand.
>
> This would save me a lot of effort,,,,and even give me a chance to pick an entry point.
>
> Many thanks,,,in advance.
>
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