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Re: shotsky post# 186210

Thursday, 11/11/2021 12:04:55 PM

Thursday, November 11, 2021 12:04:55 PM

Post# of 223302
When share price drops, people are selling at market instead of at a limit.

NO!! Selling AT THE BID OR LOWER ("Bid Whacking") lowers the share price. (And the reason why you want people to "Slap The Ask" is because it tends to RAISE the share price). The main reason for someone to "sell at market" is the speed of execution.

Stocks 101

https://www.investopedia.com/terms/b/bid_whacker.asp

A bid whacker "whacks down the bid" by selling securities at or below the current market bid. Depending on the market depth, this can lead to subsequently lower and lower bid prices.



https://www.investopedia.com/ask/answers/100314/whats-difference-between-market-order-and-limit-order.asp

A market order deals with the execution of the order. In other words, the price of the security is secondary to the speed of completing the trade. Limit orders, on the other hand, deal primarily with the price.








My posts are just my OPINION(S) and MUSINGS at the time of posting them and are subject to change.