Understanding Time & Sales for Saudi stocks

1. What is direction of trade?

The direction of trade in Time & Sales is a fundamental aspect of understanding the capital flow within the market. It helps in tracking liquidity and discerning the movement of funds in and out of securities. Three primary types of trade directions are outlined:

• Buy: It indicates trade belongs to inflow capital.
• Sell: It indicates trade belongs to outflow capital.
• Neutral: Neutral trades represent neutral capital flow.

2. Different trade types in Tadawul

Every executed transaction on the exchange is classified by a specific trade type, with each category exerting a distinct influence on market dynamics. Here are the different trade types and their implications:

• (Blank): Represents auto-matched trades above the Trade Threshold executed on-market; these trades update the last price and have an immediate impact on the market.
• A: Represents auto-matched trades at or below the Trade Threshold executed on-market; no last price update occurs, potentially resulting in a reduced immediate market impact.
• C: Denotes non-crossing, off-market trades above the Trade Threshold conducted as negotiated deals; no last price update occurs, contributing to limited immediate market impact.
• D: Indicates crossing, off-market trades above the Trade Threshold; these negotiated deals do not update the last price.
• E: Characterizes non-crossing, off-market trades at or below the Trade Threshold executed as negotiated deals; these trades do not update the last price.
• F: Applies to crossing, off-market trades at or below the Trade Threshold from negotiated deals; the last price is not updated.
• U: Designates non-crossing, on-market negotiated deal trades; these trades update the last price.
• V: Refers to crossing, on-market negotiated deal trades; these trades update the last price.

Note:

• Crossing: This occurs when one broker matches a buy order with a sell order from two separate customers for the same stock at the same price.
• On-Market: Trades that occur on the open market through the exchange.
• Off-Market: Trades that occur outside the open market, often through negotiation between parties.
• Negotiated Deal: A trade that is agreed upon through negotiation between buyers and sellers, typically outside the open market.
• Trade Threshold: The predefined level of trade amount below which certain trading actions will be partially restricted.