Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

opportunist

Members
  • Content Count

    1
  • Joined

  • Last visited

Personal Information

  • First Name
    TradersLaboratory.com
  • Last Name
    User
  • Country
    India

Trading Information

  • Vendor
    No
  1. Let's take a situation: I want to buy 100 Microsoft shares. Let's say current going rate is 40 dollars per share. I find only one guy ready to sell at 40 dollars but has only 50 shares . I know there are others who have it but wont sell at 40. Why? They want to sell at higher prices or they are just plain lazy. Whatever but I am desperate to buy. Why ? Because my analyst says there is a chance that Microsoft may acquire Google http://cdn.traderslaboratory.com/forums/images/FH_Sahm/smilies/custom2/laugh.gif. So I raise the offer price to 41 dollars. Immediately I find 2 more guys offering 10 shares each. OK so I bought 70 shares for 2820 dollars @ average 40.28 dollars per share. But I am still short of 30 shares ! Now I raise the offer price to 42 dollars. My order gets filled. So finally I spent 4080 dollars to buy 100 Microsoft shares. That is on an average 40.8 dollars a share. This whole chain of events happens millions of times on an exchange in seconds and that is how we see prices jump up and down. When some analysts give a buy signal on a stock there will be some analysts who will contradict. Whichever group wins the vote tilts the price that way. I hope that really satisfies the query.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.