Hi @CanadianAussie yeah the 2c rule is still on place (you can't buy shares on Strawman for less than 2c).

The reason is that it's otherwise possible to jag huge gains on Strawman that would not be possible in real life -- and it's all to do with what market data we get, which is only end of day.

We do have volume matching for our orders, so if for example you wanted to buy $20,000 worth of a company, and only $10,000 of shares were traded that day, the order would only partially execute, and the remainder would remain pending until enough volume was traded on subsequent days.

That's all good and well, but we only get end of day data. So we know the last traded price for the day, and the total volume traded that day. But it could be possible that a stock opened at $1 with 9000 units traded, and then closed at 90c with 1000 units traded. So in real life, if you had an order for 90c you could only have bought 1000 shares. But our system would assume that 10,000 shares traded at 90c as that's the data we get.

This isn't really a problem for the vast majority of shares, but when you get to super illiquid nanocap stocks, it becomes a huge problem.

Some clever cookies figured this out during the competition and were recording gains that were completely unrealistic. Basically buying much bigger volumes than weren't really possible. And flipping it for big profits if the price went from (say) 1.1c to 1.5c the next day.

Anyway, that's the background and hope it makes sense.

I have a similar issue re:JAN order I placed last week. I placed it at 95cents, the closing price was 92cents. I'm not sure why it didn't go through.

Is it something to do with Max composition % of a share in my portfolio? Can I not have more than 9%?

This could be for a number of reasons @Hands

Not enough volume traded on the day (I haven't checked but unlikely for JAN)

You didn't get your order in before the cut-off time and it is now trading higher than $0.95 (most likely).

You should be able to have up to 20% of your portfolio in any single stock.

@CanadianAussie Thanks for the reply.

1) can't be volume because I actually made that trade IRL

2) yes - I can only reason it must be something to do with cutoff time, I think I placed the order around 4:15-4:45pm. Bummer.

"I think I placed the order around 4:15-4:45pm. Bummer."

That's probably why. Maybe @Strawman can confirm but I think orders need to be in before 4:00pm Sydney time?

Yeah, trades are processed for orders that were placed before the official ASX close. (otherwise you could potentially trade on market sensitive info released after the close)

If it's after then (4pm Sydney time), they'll get processed at the next available close.

Go it! Fair enough. Thanks for the clarification.

(Not sure why I had it in my head that Strawman orders went in sometime between 4 and 5pm.... too much indoor screentime with this rain, need to shake some cobwebs out of my brain )

Hello @Strawman does this mean I cannot replicate holdings in say RLG - where price is 1.3c currently. Either entering a value wise or a volume amount both require a price? Which currently aren't allowed to be below 2c? I get the idea behind the limitations for % wise, but I presume this limits one from holding an identical position in shares that fall below say 2c which may come up as well undervalued as a result of the fall vs metrics ?

So no other way around this but to take a stake post a rise back to above 2c, but one could write straws in the meantime?

Yeah, you'd need to wait until shares are above 2c to buy. But you can certainly add Straws and valuations

Thanks Andrew! I can see what you mean, got a decent % jump after i posted this when it shifted from 1.3 to 1.5... but alas still below 2c.will have to wait for it to pop over!

Would the idea for restricting sub 2c purchases be counteracted by volume/weighted restrictions perhaps? So even a 15-20% increase on a low $ value or volume would in the grand scheme of the portfolio restrict absurd gains skewing the leaderboard? New here... so might have been discussed previously, apologies if so!

Cheers

That's possible, but in aggregate could still swing things around unfairly. It's just simpler this way I think, and there's really hardly any truly investment grade stocks below 2c anyway (despite a few occasional exceptions).