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/biz/ - Business & Finance


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8844248 No.8844248 [Reply] [Original]

People say there was a big buy or whales are selling or futures look bad because there are tons of shorts. I just don't get it. Doesn't each trade have both a buyer and a seller. Then if 1 BTC is sold then 1 BTC is also bought. Why do you make such a big deal over this saying how there are some big buys coming in. Doesn't that also mean there are equally big sells? Explain this.

>> No.8844262

>>8844248
You need to look into stocks 101 if you have this question

>> No.8844278

>>8844262
Not really. I know you can place an individual buy or sell. But to fill that order there would be an equal position on the opposite side.

>> No.8844281

>>8844248
Because when there are more sellers than buyers, the buyers can say "oh no no no no, this guy is giving me his stuff cheaper than you", sending the price into a downwards spiral.

>> No.8844376

>>8844248
Big sell = price goes down.
Big buy = price goes up.

>> No.8844384

>>8844248
>Doesn't each trade have both a buyer and a seller.
it's just like gay sex, you both have it, but only one of you takes it in the ass (i know it's you OP)

>> No.8844405

>>8844376
That is my whole point. What the fuck is a big sell? What the fuck is a big buy? If 100 BTC are sold that means those 100 BTC were also bought. Well then how can you call that a sell or a buy?

>> No.8844509

>>8844248
Look at the order book. When someone places a big buy order (limit), it stops the price from dropping until it is filled. One big buy order can be filled with many smaller sells.

If it's a big market order, the price will shoot up, as the sell orders will get eaten until the buy order is filled.

Watching what happens to big orders can indicate future price action.

>> No.8844534
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8844534

>> No.8844564

>>8844405
True technically, but the way it's used is to indicate the way the market is going. More people selling than buying = price goes down, so they sell down the orderbook. People buy. But the price of the orders goes down cause many people are selling. Buyers can't keep up at the price. It's also true in reverse, more buyers than sellers so the price goes up. But I have a feeling you are autistic so can only look at things in the pure literal sense.

>> No.8844574

market maker market taker

>> No.8844592

>>8844405
it has to do with the price at which it was sold.

sell 5 for $40 = good, price go up, thing held value
sell 5 for $38-35 = bad, price go down, thing now worth less

>> No.8844624

>>8844248

Bid:
599
598
597
596
595

Ask:
602
603
604
605
606

Suddenly, someone puts a bid order at 610, and meets the ask of several sellers simultaneously. That's a big buy.

If someone put an ask at 590, and meets the buy if several buyers, that would be a big sell.

>> No.8844675
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8844675

>mfw this thread again

>> No.8844696
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8844696

>>8844405
>What the fuck is a big buy

>> No.8844714
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8844714

>what is supply and demand

>> No.8845417

>>8844405
Buy: someone buys up sell orders on the books.
Sell: someone fills buy orders on the books.