"Of the shares traded, 42 percent were at the ask price and 33 percent were at the bid."
can someone explain what this means? I understand the terms bid and ask.
Thanks.
Out of 100 , 42 people bought at sellers offer price . While 33 people sold at buyers bidding price.
Indicates demand is more than supply. Sellers has dictated terms.
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thank you.
You mean buyers had an upper hand ( or more conviction to buy at the increasing offer prices)
More orders executed at āASK PRICEā means seller has upper hand.
Ask Price is always > Buy price
Example Buy - 100, Ask - 105, means seller is saying come buy at higher price (105). Buyer is same come sell to me at lower price (100).
Finally order executed at 105 means? Buyer was desperate to buy and gave up.
So Seller is strong, Buyer is desperate, and for Stock/Index it means it is bullish, since buyer ready to buy at any price.
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These statements are from BQ, link below. Looks like when there is a higher percent of trades at the ask price - it indicates a fall in the prices.
Zee Falls After Rs 4,224-Crore Stake Sale Deal With Invesco Shares of Zee Entertainment Enterprises Ltd. fell as much as 3.91 percent to Rs 347.45 apiece.
The stockās trading volume was more than 12 times its 20-day average, Bloomberg data showed.
Of the shares traded, 45 percent were at the ask price and 38 percent were at the bid.
DHFL Falls For Fifth Day, Shares Hit 10% Lower Circuit Shares of Dewan Housing Finance Corporation extended declines for the fifth consecutive trading session. The stock hit a lower circuit of 10 percent at Rs 21.15.
Of the shares traded, 72 percent were at the ask price and 21 percent were at the bid, according to Bloomberg data.
For DHFL case, it is a circuit stock. So when stock hits lower circuit, there is zero buyers. Which means on Bid side you will see blank. On Ask side, everyone is trying to get out.
In this case, whatever order executes, it will be in ask side only. Hence explains the high %.
ZEEL not sure, maybe block deal has some implications.