Buyers/Sellers On Balance

DEFINITION of 'Buyers/Sellers On Balance'

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.

BREAKING DOWN 'Buyers/Sellers On Balance'

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.

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