These are useful and collceted by yalin!
Q&A: Which transactions on the time and sales display is a buy or a sale?
I always see transactions on the T&S with buy,sale, or trade listed next to them. But isn’t every transaction a buy and a sale? How does only one get listed over the other? Now, the transactions listed only with a “trade” action next to them. Trade means change of shares into different hands, correct?
If so then why doesn’t all transactions be labelled as such.
Why is it in a action category of its own when all transactions require a change of ownership over shares. Is it because “trade” implies a transaction with market makers rather than normal shareholders.
The following is the answer:
Answer by D3TROITX313X
tdghdrh
Answer by Alan
Haven’t seen the particular time and sales screen you are referring to. However, usually there is a bid or an offer. If someone places a market order to buy, it is done at the offer, and a market order to sell is done at the bid. So orders done at the bid could be referred to as “sales” because they were probably market sell orders, orders done at the ask could be referred to as “buys” because they were market buy orders, and those in the middle would be assigned some other name. If buyers are more urgent, then prices move higher. If sellers are more urgent, then prices move lower. Trades can be classified by which party has more urgency…which is the one who met the others price.
Give your answer to this question below!
Tags: display, Sale, Sales, Time, transactions