Buyers/Sellers On Balance

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Market Depth

    The market's ability to sustain relatively large market orders ...
  2. Imbalance of Orders

    A situation when too many orders of a particular type - either ...
  3. Order Imbalance

    A situation resulting from an excess of buy or sell orders for ...
  4. Thin Market

    A market with a low number of buyers and sellers. Since few transactions ...
  5. Held At The Opening

    A situation in which a security is restricted from trading when ...
  6. Market-On-Close Order - MOC

    A non-limit (market) order executed as close to the end of the ...
Related Articles
  1. Charts & Patterns

    Why is the Relative Vigor Index (RVI) important for traders and analysts?

    Discover why traders and analysts use the Relative Vigor Index, or RVI, to measure the momentum of bull and bear movements in an asset's price.
  2. Active Trading

    Sorting Out Cult Stocks

    Is that crazy product going to be the next big thing? Learn how to evaluate these companies here.
  3. Investing

    Do stocks that trade with a large daily volume generally have less volatility?

    Stock volatility refers to a drastic decrease or increase in value experienced by a given stock within a given period. There is a relationship between the volume of a traded stock and its volatility. ...
  4. Active Trading Fundamentals

    Gauging Support And Resistance With Price By Volume

    This straightforward histogram can help you analyze the buying and selling interest in a stock.
  5. Markets

    What Is The Current Market Supply For Oil?

    Oil prices skidded by more than 10 %, sparking a sell-off in U.S. equities of 3.5 %, a Treasury rally and global headlines of growth fears and tumult.
  6. Chart Advisor

    These 4 Stocks are Hitting Technical Headwinds

    These up trending stocks are showing signs of weakness, indicating it may be time to sell.
  7. Technical Indicators

    How do I implement a forex strategy when spotting a Three Black Crows Pattern?

    Learn a common forex trading strategy traders use to capitalize on the bearish market reversal signal given by the three black crows candlestick pattern.
  8. Technical Indicators

    How do I build a profitable strategy when spotting a Three Black Crows pattern?

    Learn to identify the three black crows candlestick pattern and learn how stock market traders use the pattern to profit from a bearish market reversal.
  9. Economics

    How does a bull market affect the economy?

    Find out why it can be difficult to prove any real causal link between rising stock market prices and a healthy, growing national economy.
  10. Trading Strategies

    What signals do traders watch for that signal a change in a bull market?

    Discover the various signals of bull market tops and what traders and analysts look for as signs of an impending bearish market reversal.

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center