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What does it mean when some one says that today there was a lot of net selling or buying in a stock. What does it mean because for every selling there is also a buying going on then how can you determine a selling or buying ?

So then we could think about the notion of orders. Actual transactions only occur in balance, but there is a whole book of standing orders at various prices. So maybe we could use some measure of the volume at various price levels in each of the bid/ask books to decide some notion of net buying/selling. But again, actual transactions occur only when matched across the spread. If a significant order volume is added on one side or the other, but at a price far away from the bid/offer – far enough that an actual trade at that price is unlikely to occur – should that be included in the notion of net buying/selling? Presumably there is some price distance from the bid/offer where the orders don’t matter for net buying/selling. I’m sure you’d find a lot of buyers for BRK.A at $1, but that’s completely irrelevant to the notion of net buying/selling in BRK.A.
What does it mean when some one says that today there was a lot of net selling or buying in a stock. What does it mean because for every selling there is also a buying going on then how can you determine a selling or buying ?
Put together, this means that as more sellers enter the market, supply of shares increases, driving down price. Conversely, as more buyers enter the market, demand for shares increases, driving up share price.
Above and below the ‘spot price’, are dozens/hundreds/thousands of buyers and sellers who have placed orders that no one is yet willing to match. ie: if IBM’s spot price is at $100, there could still be 10,000 people willing to sell for $101 (called the ‘ask’ price, for the lowest price someone is currently willing to sell at), and 15,000 willing to buy for $99 (called the ‘bid’ price, for the highest price someone is currently willing to buy for).
Roughly, as the top comment notes, you could say that a price decrease is because of net selling at the previous price level, while a price rise is driven by net buying at the previous price level. But in terms of actual market mechanics, the only way prices move is by matching of a buyer and a seller, so every market transaction inherently represents an instantaneous balance across the bid/ask spread.
In simplest terms, the ‘price’ of a stock is the price at which the most recent trade occurred. ie: if the price of IBM is $100/share, that means the last time someone bought IBM stock, they paid $100.
Generally if the price of stock has gone down compared to previous day, the trend is of selling. As the price can be volatile, there maybe few trades that are above close price of previous day, or below close price of previous day.
As a result of the above, you can say that (all else being equal) if price for a stock goes up, there were more buyers that day, and if price goes down, there were more sellers that day. On the face of it, that is not necessarily true, because you could have the same number of buyers and sellers, one side could have simply decreased/increased their acceptable price to match the other side.
What does net selling or buying of a stock mean? What does it mean when some one says that today there was a lot of net selling or buying in a stock. What does it mean because for every selling
Buying a net
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