Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

TRX Gold Ord Shs T.TRX

Alternate Symbol(s):  TRX

TRX Gold Corporation is a Canada-based company, which is advancing the Buckreef Gold Project. The Company is engaged in the exploration, development and production of mineral property interests in the United Republic of Tanzania. The Buckreef Project's prospects include Buckreef, Bingwa, Tembo, Anfield, Eastern Porphyry and Buziba. The Buckreef Project encompasses three main mineralized zones: Buckreef South, Buckreef Main and Buckreef North. The Company produces gold at its 1,000 tons per day processing plant. Its gold development operations include the Sulphide Development Project, in which the sulphide ore encompasses over 90% of the Buckreef Main Zone's two-million-ounce gold measured and indicated mineral resources. The Buckreef Project hosts an NI 43-101 measured and indicated mineral resource of over 35.88 million tons (MT) at 1.77 grams per ton (g/t) gold containing 2,036,280 ounces of gold and an inferred mineral resource of 17.8 MT at 1.11 g/t gold for 635,540 ounces of gold.


TSX:TRX - Post by User

Bullboard Posts
Comment by tallestdudeon Dec 20, 2014 10:28am
176 Views
Post# 23252399

RE:volume

RE:volumeI may be mistaken, but the 3rd Friday of specific months is when "rebalancing of index contracts" takes place, as a rule of thumb, for American equities, both as individual stand-alone equities, but also if they are named components in specific stock indices' contracts, such as the XAU, and the HUI for just two examples.

That 3rd Friday timeline is when option settlement is determined and parties are either chased out because they are in a loss position called "out of the money", or assigned a marginable index contract, because they are "in the money" by the close on 3rd Friday.  If one is in the money, said profitable option position holder has until Noon on Saturday to physically make up their mind if they are going to take the option premium and run to the bank with it, or bow out of the winning position before it gets converted to a contract which requires a hefty cash margin (sometimes 100%) to hold onto their winning hand.

This behavior affects not only individuals in various indices' holdings, but also mutual funds and hedge funds who hold specific stocks which comprise a fraction of the totality of the index contracts.

Sometimes companies are removed from their "index" portfolio mixture, and that removal giggles the total percentage of the whole of the remaining equities.  According to the prospectus filings with the SEC (and I suspect Canadian Securities regulators as well, but don't know that for sure) .

When components are added or removed, the percentages of the others always is adjusted on these 3rd fridays, as mentioned earlier, but also, the MF, and the HF are required by their prospectus to buy or sell the security being added or removed.  This creates a tremendous volume.

Another feature contributing to the volume fluctuation involves the required publication of the POSITION IMBALANCE  "x number of minutes" prior to the close on 3rd Friday's.  This is to give the massive money held by MF and HF prospectus players a chance to get the rebalancing/buys or sells squared away so that they are in compliance with SEC regulators and their governing prospectus of their investors.

The 19th was most assuredly the 3rd Friday in December, and that accounts for the volume spike you observed.

GL2Y
Bullboard Posts