Buying and selling in simple terms?

  • Okay, confused by the new ME system, very simply is this it;

    Before - shares bought and sold from FI, value comes from how many shares there are in circulation?

    Now - buy now brought from FI but place bid bought from other members? And selling, sell queue sells to members matching bids but IS is sold back to FI?

    And the value now comes from what, how many shares or what people are placing bids at? Confused...😆

    Please don't mention order books, one thing at a time...😄🤯

  • @Marksandygill

    Originally & for new players FI IPO them, so buyers can buy "newly minted futures" directly from FI this establishes the number in circulation. After a short period sellers can then market list them in the sales queue which effectively supersedes FI issuing new ones (now only happens when sales queue is EMPTY but buyers still want to buy more "newly minted" ones). Market buy price is now a FIFO queue of market sellers/holders, where the price moves up/down 1p according to every 600/900 traded (this delta depends on the players price level but understanding the principle is sufficient).

    Selling used to be back to FI at the IS price but FI no longer offer this & now this IS price has been replaced by ME where the price is formed by buyer generated "buy offers" which are also the first half of OB's (soon to be completed by sell orders, where sellers can also name their own price). Once buy & sell orders are here (full OB's) price will be determined by the interaction of actual supply & demand, rather than pegged at an approximation of the number that had been minted.

    Buy offers - the price & quantity buyers are willing to pay for a player, the cumulative best offers form the IS price, which sellers can choose to match.

    Market buy - FIFO sell queue formed by existing holders, only supplemented by FI minting new futures when totally empty.

    Sell offers, coming soon to complete OB's, where sellers can name the price & quantity they are willing to sell, which can then be matched by a buyer.

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