Tuesday, 28 January 2014

Bid Size and Ask Size

There is the bid size and ask size from IB system.

Bid : that a buyer is willing to purchase at that bid price

Ask :  Ask size is the amount of a security that a company is offering to sale

If bid sizes are higher than ask sizes, then there may be a high demand for the stock.

So, I checked the current bid ask and see that :
  Stock No.   Bid size   Ask Size
                  (Buy side)  (Sell side)
  ---------  ----------  -----------
   2319       306,000        2,000    strong demand
   27             12,000    241,000    strong supply
   1928         25,600      60,000    more on supply

The gap is so big and it indicated 2319 has lots of demand, but 27 has lot of sales.
As the market is close now, so, this may not be correct now.  Better to check
before market open again.

Will this be a good indicator for the price trend in the coming day?

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