Home Business What does the counterparty mean? What does it mean?-stock knowledge-stock city stocks

What does the counterparty mean? What does it mean?-stock knowledge-stock city stocks

by admin

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.

What is the opponent

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. .

See also  Overnight trading: European and American stock markets were mixed, the Dow fell more than 300 points
0 comment
0

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy