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Level 2

The SETS screen

Dealing through SETS


	The SETS screen
		About SETS
		The SETS screen
		Pricing information
		The Order Book
		A Background to the Market and Market Makers
		Dealing through SETS
		The Closing Auction
		The Magician
		The Opening Auction

Dealing through SETS

An investor wishing to deal through SETS will contact their broker (by phone or on-line) and agree a price at which they are prepared to buy or sell a particular stock. The broker will enter the order directly onto the order book, and it will be displayed anonymously to the market alongside other orders.

In the example above of Glaxosmithkline an investor Mr Bloggs wishes to sell 1500 shares immediately, at the best price available. At the time the best 'buy' order available is for 2,500 shares (left hand column) at 1761p. The 'sell' order for 1500 shares will automatically trade against this 'buy' order- leaving 1,000 shares at 1761p on the order book.

Conversely if Mr Bloggs was a buyer of 2,500 shares at 'best', the price he would pay is 1763p, and his 2500 shares would come from the 'sell' order in the market of 7,431(Right hand column).

Alternatively Mr Bloggs might like to squeeze a little bit more money for his stock, in which case he can get his broker to 'advertise' for him on the order book. He might think that as the stock is moving up he might put a high sale price figure in hoping to make more money, lets say he is either a bit greedy or is prepared to wait for the price to rise and wants 1779p. In this example his broker would then post his 'sell' order in the right hand column . Conversely he might be a buyer but wants to buy at a discount 2,500 shares at 1754p, so his broker enters the trade on the 'buy' column (left column) and it would show up in this case as the third order.