How does the reserve price work?
Couple of players waiting to be sold and their price has dropped below the reserve price. Am I right in assuming I will still sell for a minimum of the reserve price?
@Lukeroro no! They will sell as soon as you hit the front of the sell queue and someone buys. Reserve price has never worked as far as I'm aware!
What's the point then?!
@Lukeroro in short it doesn't work. I've put a reserve on loads of times and then sell regardless
It doesnt work, never has done as far as i know... needs taking off really
Reserve only works if the price drops below the reserve price before you've sold any futures. If you place 100 on the market with a reserve of £1 and the price falls to 99p BEFORE you've sold any of your 100, then it's supposed to cancel the sale. If however you have already sold a share at above £1 then the reserve is cancelled and they stay on the market
It does work, mostly. Just no one understands it
Surely that's a major fault in the reserve price system then?
i.e. in the example you give. 1 future sells at £1, the other 99 sell at 99p. Net result is an average sale price below the reserve!