B/A Size

Posted by trader777 on December 05, 2009 (03:42PM)

1.) First of all I want to know if I'm interpreting this correctly.

B/A Size
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?

Posted by spshapiro on December 05, 2009 (04:02PM)

you are missing some information, namely the prices.  An offer is an offer to buy or sell some specific number of shares at a specific price. What is listed is the best priced offer.  So in your case the best offer to sell is 700 shares but you don't state the price.  The same goes for the buy.  If multiple offers are made at the same price, then the earliest posted order takes priority as long as it doesn't have a stipulation like AON.  So if I match the offer to sell in price with and offer to buy, but only 400 shares, that is all that is traded, and the B?A size should (theoretically) become 300/100.

Posted by OldFart on December 05, 2009 (05:58PM)

I believe the BID/ASK sizes for shares are in lots of 100, in other words the MM is willing to buy 70000 shares and sell 10000 at this price. The second question - yes, there might be more buyers and sellers but at different prices

Posted by trader777 on December 06, 2009 (06:13PM)

My third question was do you always buy stock in 100 blocks.  I just put a few thou in my account.  If I wanted to buy APPL it would take almost 10K. Or 332K for BRK.B?  Who can afford that? Even a stock at $10 I could only buy a few different stock.

Posted by OldFart on December 06, 2009 (07:03PM)

Sorry - no, you do not have to buy in lots of 100

Posted by TampaJake on December 07, 2009 (06:40PM)

OF is correct. BID/ASK is in lots of 100 shares.

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.

Posted by TampaJake on December 07, 2009 (06:45PM)

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.

Posted by TampaJake on December 08, 2009 (08:39AM)

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.

 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.

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