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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Joseph Silent who wrote (16900)9/21/2003 1:57:06 AM
From: Threei  Read Replies (1) of 18137
 
Joseph,

question a is unclear to me. Trades that trigger a quote? Quote is a bid and an offer, Trade occurs at one of them, or inbetween, or outside (not really common). Trades do not trigger a quote - quote is posted by those that bid or offer a stock. Other traders decide if they want to hit posted quote, ot post theirs inside or outside of the spread.

b) traditionally a trade at the offer is considered a buy, at the bid - a sell. Since every trade is actually both, consider it a matter of agressiveness: when a trade goes off an offer it means that the sell side played passively (posted offer and waited for it to be taken) while buy side acted aggressively, taking someone's offer instead of posting a bid. Thus, it's defined as buy.
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