Re:Stupid Things Finance People Say
by larsonf on Wednesday November 20, 2013 @02:07AM
(#6766739)
"More buyers than sellers."
Any two-sided market will have prevailing prices at certain volumes (even if internal to a dealer) that are not perfectly matched before the actual trade. Say, SPY at 180.5 X 1000 bid and 181 X 1500 Offer. If that goes on a lot (1000 vs 1500, etc), market makers will adjust prices to stay as even as possible.
What finance people mean, and this is how language works, 'More buyers than sellers [at the prevailing price]'. Good financial journalists are speaking to a sophisticated audience that understands basic market microstructure.
Any two-sided market will have prevailing prices at certain volumes (even if internal to a dealer) that are not perfectly matched before the actual trade. Say, SPY at 180.5 X 1000 bid and 181 X 1500 Offer. If that goes on a lot (1000 vs 1500, etc), market makers will adjust prices to stay as even as possible.
What finance people mean, and this is how language works, 'More buyers than sellers [at the prevailing price]'. Good financial journalists are speaking to a sophisticated audience that understands basic market microstructure.