RE: ORCP -----------------> 4 vs 15 Dec 2019 12:25
Hi Betafail. 4 vs 1
It can mean everything and it can mean nothing at all. On the order book (a visual display of price action) for FTSE stocks there are lots of market orders lining up on the left (people wanting to buy) and right (people wanting to sell) the mid-price is set by supply and demand. The market makers are there on FTSE stocks but often are away from the price action.
On Aim stocks it is less transparent and our orders to buy and sell are not lined up, instead, the market makers line up on the left and right and take buys and sells from buyers and sellers. The market makers provide liquidity. The price changes when one market maker moves the price up or down.
So if we say 4 vs 1 and use ORCP as an example it means that there is one market maker still left holding the price down at 0.38 on the right and there are 4 maket makers on the left at 0.35. So it would appear to be positive for a move upwards as only one market maker on the right has to run out of supply to the buying demand before they move the price up.
Whereas on the left there are 4 market makers buying or absorbing sells at 0.35, so less likely to knock them all out in theory.
I know that is crude and it is hard to explain with out images, but hopefully, it helps. If you want more info google Level two order book and you will see images.