How has money left the platform
I keep seeing people mentioning how much money has left the platform today, but how? My understanding was that money basically couldn't leave now (with some uncertainty over how the liquidity providers work) as you could only sell if someone was buying?
So while money may have left it has to be replaced by money coming in.
Have I missed the point or is it other people who are confused?
@GDS someone made a good point that a lot will be tied up in sell orders that are probably unrealistic and will thus be there a long time, but even so, if you’ve had money tied up in the sell queue for months and you now manage to achieve a slightly better price, then instead of reinvesting you cash out then the money has left the building. It could also just be sitting in accounts as traders decide what to do next.
Vaughany last edited by Vaughany
I imagine people are cashing in profit where they can and withdrawing it. They can’t/won’t sell the rest of their ports for big losses so will sit on them.
Thats what I’ve done. Only one of my port, Hakimi, was sat at a price where I could sell for a decent return. Sold for 1p below market price. Took my 40% profit and withdrew the whole £500. Will happily sit on the rest of my port and ride it out. The only spending I’ve done today is £30 on topping up Gunter via bids. So in total I’ve taken £470 out of the platform today.
No doubt it’ll be coming back in again shortly!! 🤷♂️🤣
Edit: people were sitting on cash balances ready for today so that’s not new money coming in. That existing money is likely to have bought my shares and I’ve taken my money out.
Mintyfresh last edited by
@GDS cash balances and money in bids will distort it a bit, but in basic terms I think you're right. Anybody selling and then withdrawing must have sold to somebody else, so not really a net loss to the platform. Just all being moved around a bit.