History shows that as the actual price gets closer to the realized price, investors tend to buy more because they don't want to sell below the value they bought at. The market price of Bitcoin has fallen under the realized price only three times in history.
Full Answer
Is it possible to buy a stock at a higher price?
It is possible to buy a stock at higher than the quoted price. When you buy a stock, it is important to set a limit order. The price can also change pretty substantially, so if this was a volatile stock, it would've been better to set a "limit", meaning you cannot buy past a certain limit.
Why do stock prices change when people sell?
Cheers ! A stock's price decreases when people sell and increases when people buy. But if 500 people sell, then 500 people buy. Shouldn't it remain constant? You make an interesting point but the reason the stock moves is that demand and supply are simply not matched at any arbitrary price, as others have mentioned.
Why are stocks with big price differences so risky?
These kind of big differences generally only happen on small exchanges with illiquid stock that is rarely traded. Which is why that kind of stock is inherently risky, partially because past price information is pretty meaningless. Show activity on this post. I set 980 instead of 880 and it is fully executed.
Is it better to enter a stock at the wrong price?
In other words: depending entirely on the (unknowable) future price of the stock you could have gained or lost money either way. Under some scenarios it would have been better to enter the "correct" price; under others it would have been better having entered the "wrong" price.
What does it mean to ask for a market price?
What is the last price of a stock?
What is an offer price?
Can you buy stock at a specific price?
About this website
Why did my stock purchase price go up?
Current Market Trends Sometimes, stocks go up simply because they have been going up. In a strategy known as momentum investing, investors buy shares in rising stocks and sell shares in those that are following. This momentum builds on itself and continues to drive rising share prices higher.
Does buying more stock at a higher price?
Opposite from averaging down, averaging up involves buying more shares as a stock rises. This increases the average price paid for a position, but if you are buying into an up-trend, it can amplify your returns.
Why is the buy price higher than the stock price?
The size of the spread and the price of the stock are determined by supply and demand. The more individual investors or companies that want to buy, the more bids there will be; more sellers results in more offers or asks. Take advantage of pullbacks in the price of crude.
Why do I buy high and sell low?
In order to avoid emotional discomfort and financial loss individuals may impulsively sell their assets at a loss in order to avoid further detriment. Despite these psychological implications, it is important to note that both buying high and selling low can both be sound financial decisions.
Do you buy when stocks are low or high?
Stock market mentors often advise new traders to “buy low, sell high.” However, as most observers know, high prices tend to lead to more buying. Conversely, low stock prices tend to scare off rather than attract buyers.
What is it called when you buy something and sell it for a higher price?
arbitrage Add to list Share. "Buy low, sell high" is the mantra of the stock market. Perhaps the most extreme example of this is arbitrage, the act of buying and selling goods simultaneously in different markets to gain an immediate profit.
What happens if no one sells a stock?
When there are no buyers, you can't sell your shares—you'll be stuck with them until there is some buying interest from other investors. A buyer could pop in a few seconds, or it could take minutes, days, or even weeks in the case of very thinly traded stocks.
Do you buy stock at the ask price?
The difference between the bid and ask prices is called the spread. The higher the spread, the lower the liquidity. A trade will only occur when someone is willing to sell the security at the bid price, or buy it at the ask price.
Record High Prices Scare Investors
I talk with hundreds of investors ... and I can tell you with 100% certainty record high stock prices scare most folks.
Stocks Will Likely Continue to March Higher
With stocks on a roll, you’d think professional investors would be feeling good. Maybe amateurs get hung up on feelings... but surely professionals control their emotions and focus on the cold hard data.
What does it mean when a stock is overbought?
When a stock is overbought owners who are not emotionally attached to the stock should sell it. They believe they are getting paid more for the stock than it is worth. Related Answer.
When do transactions happen?
As used in this question the notion of having more buyers than sellers is simply incorrect. Transactions can only happen when a buyer and seller agree on a price. That means when you adjust for the number of shares each buyer and seller want to exchange the number of buyers and sellers is always equal.
ToS order confirmation shows I am paying commission on closing options legs at .05c but rep said they do not charge commission on trades .05c or under
Is it normal for the order confirmation page when you submit a limit trade to close at .05c to show the commission even if they don't charge it? I honestly have not tested or verified myself and I don't have any trades to close right now.
Who pays the taxes on a joint WROS account?
If a family member opens up a Joint WROS account and lists their self as the primary and me as the secondary, do both of us get a 1099 and have to pay the taxes on capital gains or is it just the primary?
Locked out of account, ACH Transfer in progress
I was locked out of my account due to suspected fraud. Per multiple service associates, I should expect a letter within the next 60 days with further instructions.
Positions Went Completely Missing?
I checked my positions on Think or Swim later last night on my phone, and the app said I had no positions and my account was worth zero (which is absolutely not the case). I tried signing in from the browser on my phone and had the same result. This morning I tried signing on my desktop and it looked normal and showed my stocks.
Dividends
Can I set up my account so dividends are automatically mailed to me as a check? Now they just sit in my account.
Apple can no longer force developers to use in-app purchasing, judge rules in Epic Games case
Judge Yvonne Gonzalez Rogers handed down a decision in a closely-watched trial between Apple and Epic Games on Friday.
China Evergrande bonds suspended as prices plunge. A debt crisis could send shockwaves through China's banking system
SHANGHAI, Sept 6 (Reuters) - Bonds issued by indebted developer China Evergrande Group (3333.HK) slumped on Monday after a ratings downgrade led to restrictions on their use as collateral, prompting China's stock exchanges to halt trade.
How to hedge against inflation Michael Burry style. Part 2
This is the second installment to a post I made back in May that documented some of my inflation DD from researching Michael Burry/Scion's 13F plays. People on other subs found the information in part 1 useful so I thought I'd make a part 2 specifically for the broader audience on r/Investing.
What would happen if I bought a call and a put of the same stock?
What would happen if I bought a call and a put of the same stock? Let’s say I buy SPY, and I buy a call and a put of it for the same expiration date, obviously, one of them will make money, but as for the other one, will I just break even and have made no profit? Or is this a less risky way to buy options.
Why do day traders have margin accounts?
In short, it's because day traders have a different type of brokerage account than most other investors. To day trade, which would involve you buying and selling stock with unsettled funds (in other words, in a shorter time frame than T+3 for US equities), you must apply and be approved for a margin account.
Is a stock overvalued if the market is not falling?
The market’s digested it all and if price isn’t falling, then the stock’s not overvalued. This is not to say that due to any of the myriad variables the market deals with you cannot have a situation where value drops quickly on a lot of stocks, all at once. Of course you can, we’ve seen that.
What does it mean to ask for a market price?
When you place a market order, you are asking for the market price, which means you buy at the lowest ask price or sell at the highest bid that is available for the stock. You can ask your broker for these prices—they are normally given to you when you request a quote—or see them online through your online brokerage platform .
What is the last price of a stock?
The last price of a stock is just one price to consider when buying or selling shares. The last price is simply the most recent one. For example, if shares of Microsoft ( MSFT) trade $50 per share, then $51, and then $50, and then $49. Since the last price is the most recent trade or print, the last price is $49 per share.
What is an offer price?
The offer or ask price is the price that sellers are willing to accept from buyers. In sum, investors can use the last traded price to gauge where the market is and what people have done recently, but once this price is posted, it might not be the actual price you pay if you decide to buy the security. The better indicator is the quote, which ...
Can you buy stock at a specific price?
Alternatively, if you really want to buy or sell a stock at a specific price, it may be more advisable to use a limit order to do so. This way, you can be sure that all your buy orders will be filled at a price that is equal to or lower than your specified price level.
