In the stock market, different investors can also be classified according to different standards, such as institutional investors and individual investors. However, in financial articles, I often see information about the opponent’s market. So, what does the opponent’s market mean? Let’s take a look at the following.
The counterparty order refers to the fund order that the investor opens the opposite position after opening a position.For example: I buy a lot of stocks. At this time, the investor who sold this lot of stocks is my opponent.In actual trading, whether the counterparty is adequately matched is the decisive factor for market changes.When you are long, if you have a few against a few, the market will continue to move upward; when you are short, if your opponent has less, the market will plummet all the way.
Under different circumstances, investors face different counterparties. When doing short-term transactions, most of the counterparties are hot money, and when doing long-term transactions, most of the counterparties are institutions. In addition to institutions and hot money, there is also a special counterparty in the stock market, that is, market makers. Market makers are institutions that accept the buying and selling requirements of public investors. Their existence is not for profit, but only to provide liquidity for stocks. .