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  1. #1
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    Feb 2015
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    Default Sharesies Market Depth Question

    Probably more of a general market depth question.

    It seems on most funds and many shares there is almost always 2 bids and 2 offers for round numbers - usually 5000 or 10000 amongst everything else, Now obviously some one is bidding / offering this, the numbers are always round numbers of shares - not dollars, except on the odd time where you can see a small part of the 10000 have been brought or sold

    What exactly are they trying to achieve, what kind of organisation / person is placing these bids? Why almost always 2 buying and 2 selling with round numbers.


    market depth.JPG

  2. #2
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    Default

    Quote Originally Posted by humvee View Post
    Probably more of a general market depth question.

    It seems on most funds and many shares there is almost always 2 bids and 2 offers for round numbers - usually 5000 or 10000 amongst everything else, Now obviously some one is bidding / offering this, the numbers are always round numbers of shares - not dollars, except on the odd time where you can see a small part of the 10000 have been brought or sold

    What exactly are they trying to achieve, what kind of organisation / person is placing these bids? Why almost always 2 buying and 2 selling with round numbers.


    market depth.JPG
    Hi humvee,

    They are almost certainly what is called "market makers". The owner of the said ETF will hire these to provide liquidity for each of the funds. That helps generate interest in the fund but also the liquidity required so that you the buyer or seller have a readable trade always available. They make their money on the spread between the bid and offer.

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