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samplescave

07/30/09 4:32 PM

#12413 RE: Mustang66 #12409

Mustang66, yes. To answer this Very Old Debate, if someone sold, someone bought.

Here is the difference.

If the transaction took place "AT THE BID" then someone sold and brought the price down as either a MM or a buyer had an order in to buy at that Bid Price.

This is why the price will go down.

The same applies when there is no seller at the bid, then the Buyer will have to hit the Ask to satisfy the Seller, if the Seller has their Sell price set at the Ask, Hence, the Price goes up.

This is why the Price will go up.

Clear now?
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c7bk

07/30/09 4:33 PM

#12415 RE: Mustang66 #12409

Thats why its a t-trade. For example; someone has an arrangement for a marketmaker to sell 10M shares. Lets say today the MM is able to find buyers for 1.5M shares at prices ranging from .0141 to .017. To offset this they post a t-trade after hours of 1.5M shares at .014 for the seller. This balances the books and they make the difference between .0141 and whatever they actually sold them at.