I understand but I don’t. When I “sell” stocks, who am I selling to exactly? The people who are buying in that exact moment? The exchange institution? Same when I’m “buying”.
In: Economics
>The people who are buying in that exact moment?
Yes.
…the end, I guess?
Another person just like you who wants do the exact opposite. There are also people/firms who buy and sell when there’s no one else around to provide liquidity and they are short term
You’re generally selling to other people because yes there are people with buy orders in that exact moment. The amount of people trading a specific instrument and how quickly orders execute is referred to as liquidity. In certain cases your sell order might not be filled right away. It is also the case that to expedite transaction speed and convenience a lot of the time institutions or brokers buy the stocks off you because having a large pool of stock helps them support after hours trading, which is when a broker facilitates trading between investors during off market hours with the available float between them.
Latest Answers