Buyers/Sellers On Balance

A A A

DEFINITION

1. A ratio based on aggregate market orders for securities that tells whether there are more buyers or sellers in the current market. This ratio is usually provided just before the market opens.

2. A term that describes whether an investor has mainly acquired securities or mainly sold securities over a given time period.

INVESTOPEDIA EXPLAINS

1. A market with more buyers on balance usually indicates positive investor sentiment, while one with more sellers on balance usually indicates negative investor sentiment.

2. If an investor is a buyer on balance, it is generally a positive sign that they have identified a number of potentially profitable opportunities in the market. If an investor is a seller on balance, this situation could indicate a number of possibilities. The seller might have multiple investments that have reached profitable selling points, such as previously undervalued securities that have increased in price. The seller might also be unloading investments out of distress or fear.


RELATED TERMS
  1. Order Imbalance

    A situation resulting from an excess of buy or sell orders for a specific security ...
  2. Held At The Opening

    A situation in which a security is restricted from trading when the stock exchange ...
  3. Imbalance of Orders

    A situation when too many orders of a particular type - either buy, sell or ...
  4. Market-On-Close Order - MOC

    A non-limit (market) order executed as close to the end of the market day as ...
  5. Thin Market

    A market with a low number of buyers and sellers. Since few transactions take ...
  6. Market Depth

    The market's ability to sustain relatively large market orders without impacting ...
  7. Bear Fund

    A mutual fund designed to provide higher returns when the market declines in ...
  8. Holding Period Return/Yield

    The total return received from holding an asset or portfolio of assets over ...
  9. Graveyard Market

    A prolonged bear market where existing investors want to get out and new investors ...
  10. Outcome Bias

    A decision based on the outcome of previous events without regard to how the ...
Related Articles
  1. Sorting Out Cult Stocks
    Active Trading

    Sorting Out Cult Stocks

  2. Do stocks that trade with a large daily ...
    Investing

    Do stocks that trade with a large daily ...

  3. Gauging Support And Resistance With ...
    Active Trading Fundamentals

    Gauging Support And Resistance With ...

  4. Getting On The Right Side Of The P/E ...
    Fundamental Analysis

    Getting On The Right Side Of The P/E ...

  5. 5 Tips For Recession House Hunters
    Home & Auto

    5 Tips For Recession House Hunters

  6. Active or Passive? How to Blend Aspects ...
    Trading Strategies

    Active or Passive? How to Blend Aspects ...

  7. Herding Tendencies Among Analysts
    Investing Basics

    Herding Tendencies Among Analysts

  8. The NASDAQ Pre-Market: What You Need ...
    Investing Basics

    The NASDAQ Pre-Market: What You Need ...

  9. The Rise And Fall Of The Shadow Banking ...
    Personal Finance

    The Rise And Fall Of The Shadow Banking ...

  10. ChartAdvisor for Aug. 15, 2014
    Chart Advisor

    ChartAdvisor for Aug. 15, 2014

comments powered by Disqus
Hot Definitions
  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  2. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  3. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  4. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  5. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  6. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
Trading Center