ZIP
Wondering why ZIP shares trade in high volumes. With more sellers than buyers but the shares keep going up. Shouldn’t it be the other way around shares should go down.🤔
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Answer
Hi Wayne,
A couple of points of interest here:
- Zip (ZIP) shares trade in high volumes because the stock moves a lot, so day traders and others ‘punt’ around in ZIP, hence the volume.
- The market depth may show more volume of sellers than buyers but that only shows orders that are in at or below the current price to buy, and at or above the current price to sell. A lot of volume will come in and hit the prevailing bid or offer – which is typical of hotter, faster money where traders are scalping smaller intra-day moves.
