What is Best Buy and Best Sell?

#1
Hello all!

I have opened an account with a broking firm. In it's online trading portal, I can see two columns namely best buy and best sell in each and every stock's price details. Can any one tell me what is this best buy and best sell? please check this image below:

 

alroyraj

Well-Known Member
#2
Hello all!

I have opened an account with a broking firm. In it's online trading portal, I can see two columns namely best buy and best sell in each and every stock's price details. Can any one tell me what is this best buy and best sell? please check this image below:

The highest buy order is matched with the lowest seller . This is the way the exchange matches the orders of buyers and sellers . Hence the top best buys are the highest buy orders and the best sell orders are the lowest sell orders.
 
#3
Thanks alroyraj for the explanation , could you please elaborate it a bit. Like, how can I use these values in deciding my stock purchase?
 

rvm123

Active Member
#5
This means there is one seller who is ready to sell 38 number of shares @ Rs.449.80;1 seller to sell 50 shares @ Rs.449.95 and so on.

Similarly, there are 1 buyer to buy 10 shares at Rs.447.5; 2 buyers to buy a total of 6 number of shares at Rs.448/- and so on.

Under this circumstance, if you want to sell 31shares at Rs.447.50, u can give your order and the same will be materialised then and there.
 

alroyraj

Well-Known Member
#6
Thanks alroyraj for the explanation , could you please elaborate it a bit. Like, how can I use these values in deciding my stock purchase?
Say you would like to purchase some shares immediately for the long term then you can check the sellers. For you to purchase ,there has to be some sellers to sell it to you.
It is always advisable to have a broker with some real time charting facility for you have an idea about the decent price to purchase. Typically I have observed that you can buy at the 20 day moving average.

Checking the order book allows yourself to align yourself with the market.
The first thing while entering a trade is to recognise the market direction then strength . The order book tells in one way the direction.
In the above example,you have seen the price of Tata Coffee at 449.8 and in the order book the sellers are more at that price, then it is obvious that selling pressure has come in and the stock could go down by a few ticks.
 

rajputz

Well-Known Member
#7
Hello all!

I have opened an account with a broking firm. In it's online trading portal, I can see two columns namely best buy and best sell in each and every stock's price details. Can any one tell me what is this best buy and best sell? please check this image below:

To my understanding, It is market watch window which shows the 5 Bid and 5 Offer prices. The buyers and sellers are arranged in descending and ascending order for execution. That is the way market is created. The last 5 Buy Prices near to LTP in descending order, and last 5 Offer Prices near to LTP in ascending order along with no. of shares. It is 5 prices and quantity at which buyers want to buy low and sellers want to sell high.

This gives momentarily idea (idea, not assurity) with the help of Quantity, where the herd wants to move. Say for total 5 bid offer has a quantity of 100, and 5 offer has total quantity of 200. Then it means that no. of sellers are more then buyers. And price can drift lower. But this is a chance. As sellers doesnt lower their offer and Buyers increase their bid then price can drift higher. it all depends upon the market sentiment where they want to lower the offer or increase the bid with quantity.

It is also helpful in trading stock options. As we can know where the last traders wants to sell and buy. Where can be the next LTP.

It is just how i read it. It can be totally different for some one else. But is extremely helpfull.
 

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