2 ms·

That’s kind of what I had in mind, I don’t really know if it’s feasible or not but if I had billions of dollars deposited in my Robinhood account just made the

That’s kind of what I had in mind, I don’t really know if it’s feasible or not but if I had billions of dollars deposited in my Robinhood account just made the order for that many shares, would it not go through?

ladberg 3y ago
It would not go through: you can only buy as many shares at once as other people are currently offering at that specified price, which would be negligible compared to the total amount of shares.
rvnx 3y ago
Typically this is what you see on a stock: > Bid [500 x $64.39], [$64.42 x 100] Ask < It means that someone currently offers to buy 500 shares at the price of $64.39. It means that someone currently offers to sell 100 shares at the price of $64.42. In practice, it means that you can buy 100 shares at the price of $64.42, then, after, it will move to the next price level. => You can see the "depth" of offers, it's called Level 2 book: Ask offers: $64.42 x 100 $64.43 x 200 $64.46 x 100 $65.00 x 600 $97.00 x 100 $999.99 x 100 => If you try to buy 400 shares, it will cost you: 100 shares x $64.42 = $6 442 200 shares x $64.43 = $12 886 100 shares x $64.46 = $6,446 Divided by 400 shares. It means ~$64.435 per share, though you saw $64.42 as price. If you send very large volumes, you quickly eat these price levels. In our example, if you try to buy 2000 shares, you will get only 1200 shares. You will have paid an average price of $145.39 per share. So, yes it may not go through because, it is possible that there are not enough people interested to sell their share (that there is not enough depth, or not at an acceptable price). And also, the SEC has certain rules (uptick rules, etc) that makes the stock to be frozen in case the price varies too much.
- codeisawesome 3y ago
  Thank you for typing out the explanation!
  - rvnx 3y ago
    My pleasure :)
monkeywork 3y ago
There are a finite number of shares - you can only buy what is available for sale. When you log into Robinhood and put in an order as a consumer you are doing it on a small enough scale that you don't see it but every "buy" request gets matched up with someone elses' "sell" request. When we are talking about a massive % of the total share count there simply isn't that many "sell" requests out there for you to take advantage of.

ladberg 3y ago

It would not go through: you can only buy as many shares at once as other people are currently offering at that specified price, which would be negligible compared to the total amount of shares.

rvnx 3y ago

Typically this is what you see on a stock: > Bid [500 x $64.39], [$64.42 x 100] Ask < It means that someone currently offers to buy 500 shares at the price of $64.39. It means that someone currently offers to sell 100 shares at the price of $64.42. In practice, it means that you can buy 100 shares at the price of $64.42, then, after, it will move to the next price level. => You can see the "depth" of offers, it's called Level 2 book: Ask offers: $64.42 x 100 $64.43 x 200 $64.46 x 100 $65.00 x 600 $97.00 x 100 $999.99 x 100 => If you try to buy 400 shares, it will cost you: 100 shares x $64.42 = $6 442 200 shares x $64.43 = $12 886 100 shares x $64.46 = $6,446 Divided by 400 shares. It means ~$64.435 per share, though you saw $64.42 as price. If you send very large volumes, you quickly eat these price levels. In our example, if you try to buy 2000 shares, you will get only 1200 shares. You will have paid an average price of $145.39 per share. So, yes it may not go through because, it is possible that there are not enough people interested to sell their share (that there is not enough depth, or not at an acceptable price). And also, the SEC has certain rules (uptick rules, etc) that makes the stock to be frozen in case the price varies too much.

codeisawesome 3y ago
Thank you for typing out the explanation!
- rvnx 3y ago
  My pleasure :)

monkeywork 3y ago

There are a finite number of shares - you can only buy what is available for sale. When you log into Robinhood and put in an order as a consumer you are doing it on a small enough scale that you don't see it but every "buy" request gets matched up with someone elses' "sell" request. When we are talking about a massive % of the total share count there simply isn't that many "sell" requests out there for you to take advantage of.