700 x 100
This mean you can only sell 700 shares and buy 100 shares?
2.) Second, does this number have any meaning. If you can only buy 100 shares and sell 700 does that mean there are more buyers than sellers what does that mean as far as confidence and interest in this stock?
3.) Third, Do you have to buy in certain sizes when you buy stock or can you buy arbitrary number of shares without any extra fees?
What it means (from tradetrek.com) -
- A large bid size indicates a strong demand for the stock.
- A large ask size shows that there’s a large supply of the stock.
- If the bid size is significantly larger than the ask size, then the demand for the stock is larger than the supply of the stock; therefore, the stock price is likely to go up.
- If the ask size is significantly larger than the bid size, then the supply of the stock is larger than the demand for the stock; therefore, the stock price is likely to drop.
Because bid/ask prices and sizes change quickly in real-time, supply and demand also change quickly in real-time. Experienced traders always pay very close attention to the bid/ask sizes of a stock to monitor the supply-demand dynamic. Short-term traders usually buy a stock only when the demand is higher and sell a stock if demand suddenly becomes lower relative to supply.
I have the answer to my question. The numbers mean nothing when the market is closed. I have seen these reverse this morning pre-market with very little volume. Just the money maker trying to get interest in this issue, I believe.
TampaJake said: Now I have a question.... Does bid ask size mean anything when the market is closed? One of my holdings has a 6900 x 200 bid/ask size at 6:45 p.m.