Can anyone tell what is the advantage of showing display quantity lesser then wht we actual place order… I am new to trade Plz anyone can share…
This is a method to conceal the real demand and supply situation in the stock market.
Revealing the real demand and supply will have huge impact cost when dealing with large quantity.
In stock market the more qty you want to buy the price keeps going higher.
When you want to sell more the price keeps going down.
A similar analogy is applicable in our day to day life.
If you are trying to SELL something, you do not want the BUYER to know you have too much quantity of this rubbish piled up, this will give the buyer a chance to haggle you down thinking that you are set out to get rid of all this scrap anyway.
Similar when you want want to BUY something, you put a less interested face, for the seller to bring down his prices down so he can get rid of his rubbish.
SO when you use the option to display only a percentage of your real order, the market would not know how much you want to really buy or sell, thus reducing the impact cost.
OMG, Thanks a lot for giving me in depth Explanation…