Replies to post #56465 on Options Media Group Holdings, Inc. (OPMG)

[Dannyboy4]

No, that's not how it works.

I'll make up a fake L2 in order to show how it works.


.01 - start of day Shares traded
.011 - buy + 50
.011 - buy = 6500
.0105 - sell - 7500
.009 - sell - 911
.008 - sell - 5000
.009 - buy + 5000
.009 - buy = 45000
.009 - buy = 600
.009 - buy = 4500
.015 - buy + 18000
.028 -buy + 14000
.027 - sell - 1000
.027 - sell = 15000
.015 - sell - 4000
.016 - buy + 2000

It doesn't matter if it's at the ask, bid, or between the bid and ask. All that matters is if the transaction is above, below or equal with the previous transaction. That is what determines a buy or sell.

The total would be:
95,650 BUYS vs 33,411 SELLS

[DRock3284]

Just because there's a (retail) sell, it doesn't mean there was a (retail) buy. This is why there are MMs. When we sell a stock, we are selling to an MM, when we buy, it's from an MM. That's why there is a spread of the Bid/Ask; MMs have to make money too, or they wouldn't be there and the market would be total chaos. We sell at the Bid and we buy at the Ask. It may seem different at times, but if you buy (seemingly) at the Bid, the Ask was actually dropped momentarily and the Buy brought the Ask back up before anybody noticed the drop. One investor does not sell directly to another investor. The market keeps liquidity because the MMs have an inventory of shares or need to build up an inventory.

Technically there is a buy for every sell, but it doesn't happen at the retail level. One day, the MMs will get a lot of shares and the price drops; this is a heavy selling day. Another day, the MMs will get rid of a lot of shares and the price rises; this is a heavy buying day. Simple supply and demand.