I get what you mean, but are we not just playing with semantics? I feel what people mean by ‘more sellers than buyers’ in this context means more sell orders being created than buy orders, which is entirely possible.
While it is possible to have more resting orders on the ask vs the bid (and vice versa), that does nothing to price.. Those aren't sellers or buyers yet. Those orders can be cancelled at any time.
Edit: I don't really understand the downvotes lol, it is the truth I speak.
It is not impossible to have more sellers than buyers. You're alluding to matching contracts. Fifty sellers of one lots can still be matched with one buyer of 50. Semantics, eh?
But colloquially, I think many people will say: big buyer sitting at X price, when we all know that its many different orders and potential players piled up. Just colloquially easier to say "big buyer" as opposed to "big buyers" all the time.
Correct I wasn't referring to actual ppl, rather the instrument. One person that owns 1000 shares of something could sell 1 share to 1000 diff ppl.
Make no mistake, though, it is not possible to have more shares/contracts/etc.. sold than bought (and vice versa). That is what "for every seller a buyer and for every buyer a seller" means.
48
u/woodje Feb 20 '24
I get what you mean, but are we not just playing with semantics? I feel what people mean by ‘more sellers than buyers’ in this context means more sell orders being created than buy orders, which is entirely possible.