Trade reversals

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1

Imported from previous forum

2

[ original email was from Darshan Khedekar - darshan.khedekar.ext@deutsche-boerse.com ]
Hi,

I have a peculiar problem wherein I need to convey 3 things.
(1). Details of a revered trade.
(2). Changes to the High and Low price due to the reverse trade
(3). Changes to the trade volume of the security due to the reverse trade.

Regards
Darshan

3

[ original email was from Marcondes Farias - mfarias@bmf.com.br ]
Hi Darshan,

normally the decision about the procedings after a trade reversal is let to the exchanges’s regulations and internal business practices. IN my point of view and under my experience, after a trader reversal you have these scenarios:

  1. The trade is the first trade ocurred in the day:
    Then, all the information about the last trade must me reset to the last day information given

  2. The trade is the high price of the day
    Then you have to keep record of all tha previous trades to reset the high price to the second high price after the one that is being cancelled

  3. The trade is the low price of the day
    The reverse tought from the one above

Hope this can help

Cheers

Hi,

I have a peculiar problem wherein I need to convey 3 things.
(1). Details of a revered trade.
(2). Changes to the High and Low price due to the reverse trade
(3). Changes to the trade volume of the security due to the
reverse trade.

Regards Darshan

4

[ original email was from Marcondes Farias - mfarias@bmf.com.br ]
Darshan

I forgot to tell that in the volume case, its the same thing: you should recalculate the trade volume without the reversed trade.

Cheers

Hi Darshan,

normally the decision about the procedings after a trade reversal is let
to the exchanges’s regulations and internal business practices. IN my
point of view and under my experience, after a trader reversal you have
these scenarios:

  1. The trade is the first trade ocurred in the day: Then, all the
    information about the last trade must me reset to the last day
    information given

  2. The trade is the high price of the day Then you have to keep record
    of all tha previous trades to reset the high price to the second high
    price after the one that is being cancelled

  3. The trade is the low price of the day The reverse tought from
    the one above

Hope this can help

Cheers

Hi,

I have a peculiar problem wherein I need to convey 3 things.
(1). Details of a revered trade.
(2). Changes to the High and Low price due to the reverse trade
(3). Changes to the trade volume of the security due to the reverse
trade.

Regards Darshan