So, what does it do? Why is it useful?
Using the example of AEM (a stock that jumped 14% in a day today), under the "Bid and Ask" tab gives us a series of Bid and Ask. Bid refers to the price buyers are queuing to buy and ask refers to the price sellers are willing to sell. The volume is also indicative for the price. This means that the info is useful when we like to enter or cash out a position. This is because sellers might not want to sell unless for a certain price. When cashing out a position, it is also favourable to sell at a price where it is just before huge volume selldown by bigger players. This will ensure your order gets filled first instead of it being behind them.
It is quite sad that I might lose this access after the 28th September so will have to try to find an alternative that can give such info.
Otherwise, the "Trade Distribution" info and "Time & Sales" info will be intact and remain free to access for me. In a way we will still be able to track the volume transacted at specific prices to help make our trade decisions.
Having said that, most of the online brokers have a decent system and information to access and make decisions. More often than not, we might not have time to screen through every single parameter so this might be one of those things to observe when entering/exiting a position.
Then again, we ought to be familiar with the systems/software that we are using as we are relying on them to make our trade decisions.
Until Next Time,
K.C.
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