It is possible that some bids and offers will trade in part, which means the investor will buy or sell a smaller number of financial products than the maximum amount indicated in their order.
Catalist’s auction algorithm sets a price for shares in ABC Limited at $1.10 per share. At this price, sellers were willing to sell a total of 10,000 shares, but there were 3 investors who submitted bids to buy a total of 12,000 shares:
Aroha submitted the first bid to buy 5,000 shares at $1.10 (or below). Ben submitted the second bid, to buy 2,000 shares at $1.15 (or below). Colin submitted the last bid, to buy 5,000 shares at $1.10 (or below).
Ben’s bid is the highest price, so he trades first. Ben will purchase the 2,000 shares he wants at the price of $1.10 per share (Ben gets a better price than the maximum he was prepared to pay).
Aroha and Colin’s bids were at the same price, but Aroha’s bid was first in time, so she gets priority. Aroha will purchase the 5,000 shares she wants at $1.10 per share.
Colin will purchase the remaining 3,000 shares at $1.10, but he won’t get the full 5,000 shares he was prepared to buy.