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/biz/ - Business & Finance

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17927042 No.17927042 [Reply] [Original]

Can somebody help a brainlet? I am completely new to this and I don't understand. If there are, say 10k stocks on the market, somebody does a limit sell order for the high price and then somebody buys, say, 50k stocks, shouldn't the limit sell orders resolve? Or am I exceptionally retarded? Do the fucking stop-limit orders resolve before or what?

Pls no bully, I'm trying to understand

>> No.17927355
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17927355

>>17927042
You have your definitions of limit and market backwards I think...

>> No.17927369

>>17927355
yeah might be. Can you explain for a retard?

>> No.17927535

>>17927369
A limit order goes into a book. Let’s say 5 shares for $5. And it does not execute until someone else matches that price. Well, a market order executes instantly, it just says give me X shares right now, and it takes from the limit orders starting with the best price.

>> No.17927734
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17927734

>>17927535
right, I got that. It's kinda like putting up stocks on the market and say: "hey this shit's the price I'm willing to accept for my thing", right? But I see shit moving in the trading history, shouldn't the current available ammount change, too?

I am currently just trading some 2k doge to get a feel of this, nothing serious, I won't invest anything without understanding jack shit, so this is where I'm coming from. I have 2k on a limit sell order for 0.0000003, there are currently 58k doge available for that price and pic related should have easily bought it all up, in my understanding.

>> No.17928044

>>17927042

Ok. First things first, the current price can only moves through market orders because they consume liquidity. If no one is execution market orders,the price will not move. Also, a limit order turns into a market orders when that level is hit.

A limit sell has to be matched with the closest bid below it. You're also not taking into account the number of shares at each price point but that's a separate convo

In your example, if I have a 10k limit sell at say 1.05, and you decide to do a market buy of 50k shares your buys would consume my orders at 1.05 and activate them. If there are 30k orders at 1.06 it would chew through that level as well. It would keep going through the limit sells until your 50k shares were satisfied. If there was nothing after 1.06 until 10k limit sells at 1.10, when your 50k hit the market price would instantly jump to at least 1.10. hope that makes sense.

>> No.17928121

are you an actual 60y/o boomer trying crypto for the first time or something?

>> No.17928142

>>17928044
I'll be honest though, this stuff isn't important unless you're scalping for ticks on 1 second charts or coding an algo to do the same. Scalping the DOM is pro-tier stuff and it's possible, but requires a lot of screentime

>> No.17928199

>>17928121
Nah I just never had interest in finance before. But I'm kinda bored and I like blockchain tech in general, so I'm just learning things for fun
>>17928142
>if I have a 10k limit sell at say 1.05, and you decide to do a market buy of 50k shares your buys would consume my orders at 1.05 and activate them
so what's up with binance and their weirdass trade history, shouldn't my order have been activated?
>>17928142
What is more important, though? Any resources I could look up?

>> No.17928412

>>17928199
I'm not familiar with binance, but that pic is the ticker tape. Those show you when prices were at a certain level and don't split up buys and sells. If you can see the DOM that would answer your question.

As far as resources look up Jigsaw, it's a professional DOM tool. It's mostly for futures though and pretty expensive. If you want to stick to crypto you're better off daytrading off price action or something. Or swing trading. My point is really that looking at the order book and trading off it is super hard as it is, doubly so when you don't have the tools for it. Jigsaw has free courses on order flow trading, look them up if you're still interested

>> No.17928450

>>17928412
alright thanks man.