Bursa Trade

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Securities Market : Frequently Asked Questions (FAQs)
Last Updated:November 19, 2008

We have prepared a list of FAQs to help you understand the features and benefits of Bursa Trade.

Q1.	What is Bursa Trade?
	Bursa Trade is a trading platform that lets the investor of Bursa Malaysia to see more and do more in areas covering the business of trading and information sourcing.

Q2.	What are the changes introduced by Bursa Trade?
	The biggest change will be in the area of the trading day with a number of different phases to allow for various activities, such as establishing opening prices, real-time order matching and end-of-day processing to establish the natural closing price.

Q3.

What are the main advantages Bursa Trade brings the investor?

	Continuous real-time matching
	Theoretical Opening Price (TOP)
	Theoretical Closing Price (TCP)
	More order types
	5 best price limits displayed

Q4.	What time does the market now open?
	The Pre-Opening session for Bursa Securities opens at 8.30am, while Bursa Derivatives Index Futures opens at 8.15am and Bursa Derivatives Palm Oil Futures opens at 10.00am. Please refer to the Bursa Trade Day interactive guide for complete phases, timing and features.

Q5.	What is the Theoretical Opening Price and why is it so important?
	The Theoretical Opening Price is the price at which share would trade if it opens at the moment the price is calculated. TOP is calculated on a real-time basis in Pre-Opening Phase. With TOP, investors can get a better understanding of market demand and supply conditions to better plan their investment strategies.

Q6.	What is the Theoretical Closing Price (TCP)?
	This is the price at which a share would trade if it stops trading at the moment the price is calculated. TCP is calculated on a real-time basis in Pre-Closing/Closing Phase. As the TCP is locked in at the Trading at Last and Closing, it allows the investor to gauge the price to be traded at the Opening as well as to plan ahead with greater clarity.

Q7.	How are orders prioritised?
	Orders are queued and traded according to price-time priorities. Better priced orders trade are first. If there is more than one order at the same price, the order that was placed first has priority.

Q8.	Who can subscribe to Bursa Trade?
	Bursa Trade is a securities and derivatives trading platform that is used by Bursa Malaysia. Participating brokers and information vendors have direct access to Bursa Trade. Investors can trade as they have done in the past, either through their broker, dealer or remisier or via one of the many brokers that offer online trading for Bursa Securities.

Q9.

What are the order types?

Securities:

	Limit Order
	Market Order

Derivatives:

	Limit Order
	Combination Order
	Stop/Stop Loss Order
	Market on Opening (MOO)
	Market to Limit (MTL)
	Stop Limit Order
	FAK_Market Order

Q10.

What is matching and the mechanisms used?

Matching is based on a full match or partial matching. A full match is when the bidding price is matched by the seller, whereas in a partial match, the full order is not taken up due to certain conditions.The matching principles are based on Price and Time Priority.

Price:

	The higher the bid price the better the chance it will be matched by a seller (Best Bid)
	The lower the ask price the better the chance it will be matched by a buyer (Best Ask)

Time:

If there are multiple orders with the same price, the time at which the order was entered will become a factor in determining which order has matching priority, thus the first in first out (FIFO) rule applies.

NOTE 1: The above matching priority applies to both Futures and Options
NOTE 2: During continuous trading, the orders in the order book are executed according to price/ time priority. Market orders shall have priority over limit orders.