Impact of instant sell of buy price?

  • Been trying to work this one out in my head.

    If you stick 100 futures in a sell queue then (loosely) the price reduced by 1p. If 100 future are bought without anyone selling, the price increases by 1p.

    However, if you instant sell 100, does this reduce the price by 1p? That would be the obvious answer

  • @LG I don't know the official answer but it's 100 less shares owned by traders at the end of the day so in theory yeah it should go down by a penny.

  • @LG depends on how popular the player is because someone like Arnautovic tonight you should check his price now and then see what it is on about 60 mins....if he is scoring the winning goal then you will see his price rise about 10p-12p but if he hasn't scored or West Ham are losing then traders will start to instant sell him and he is likely to drop 5p-8p??

    Bottom line is people will not put him in the selling queue if he's not doing anything in the match !!

  • My understanding of it is that the price is dependant of how many shares are 'outstanding' (owned by shareholders).
    Obviously if you instant sell then this is selling to FI and effectively wipes those shares from the total (ergo price goes down). But you can think of putting shares in the queue as the same thing. By adding your shares to the queue think of it as you no longer 'owning' them, therefore FI will amend their price the same way as they would an IS. Now when someone comes to buy the shares, this works the same way as if they were buying from FI; simply the outstanding share count has increased.
    In short, market selling doesn't cause the price to go down, it actually causes it to go up. It's the adding of share to the queue that causes the drop

  • @Blue-Python that's what I was trying to say in my head. Great explanation

  • @John-Renwick Thanks mate, took me awhile to get my head round it!

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