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Strategies & Market Trends : Three Amigos Stock Thread

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To: Sergio H who wrote (3632)4/22/1998 7:42:00 PM
From: Ditchdigger  Read Replies (2) of 29382
 
Sergio,this is my understanding,which I posted to someone else last night..
The bid price,is the price a "dealer" is willing to "pay" for a stock. Bid prices quoted are always the highest available.

The ask price,is the price the "dealer" is willing to "sell" the stock for. Asked prices quoted are always the lowest available.

So, Bid numberX is the number of shares a dealer is looking to buy. And Ask numberX is the number of shares the dealer is looking to sell.
Thus, if the bid size is larger than the ask size,it shows a bullish,buying demand (MMs buying to supply us).If the ask size is larger than the bid size(the MMs are looking to sell,lack of investor demand-bearish)
What do you think? DD
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