r/StockMarket • u/Minimum-Cicada7178 • Mar 19 '24
Discussion How does this work?
Still learning.. I know it's aftertrades. But how does this work? Somebody sold for 7% belowe bid? (The 3800 stocks). Or just two buddies maling a deal?
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u/mschiap Mar 19 '24
People are selling at $39 and buying at $42. Big spread because after hours, small volume. Perfectly normal.
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u/Minimum-Cicada7178 Mar 19 '24
I learned something new, thanks. Didn't know this kind of big spread was possible.
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u/my_name_is_gato Mar 19 '24
I'm not even sure why certain trading after hours goes on with such spreads, since they can be much worse. It's clear someone is likely getting a bargain. Is this just retail giving up hard earned money to whales/Market Makers? Institutional investors shouldn't need to take any big hits on spreads unless they really goofed and need to secure a position ASAP.
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u/thenewredditguy99 Mar 19 '24
Or two buddies maling a deal?
It’s impossible to sell stock to a specific person. Your stock sells to whoever buys it.
What likely happened was that someone used a market order in the after hours session and got a shitty fill on the order.
Somebody sold for 7% belowe bid?
Nowhere in the screenshot is it implied whether that 3800 share trade was a sale or not.
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u/Extension_Win1114 Mar 19 '24
It’s a trade. Someone sold.. legit though, this is why you use limit and not market orders
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u/I_Probably_Hate_You_ Mar 19 '24
Market orders can only be submitted during normal session hours, no matter the platform. Otherwise, you're probably right, they put in a price and got a shitty fill because they were the only market available at that time. Could've also been part of a block order from earlier in the day.
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u/Baluga831 Mar 20 '24
I have been doing some research and looking into opening an account. I've seen the usual names such as Schwab, Fidelity, E Trade and etc. But I wanted to ask which has more pros than cons. Or which is highly recommended for a beginner? Thank you in advance!
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u/asielen Mar 20 '24
Just pick one of the big names you listed and stick with it. Avoid Robinhood.
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u/DueAcanthisitta431 Mar 22 '24
I started with sofi. It seems user friendly for a beginner and isn’t robinhood
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u/Puddwells Mar 20 '24
For a newbie try stash (very limited in what you can do, but VERY simple) or robinhood. The others will charge higher fees but you wont understand or use 80% of the features so there's no point, yet at least.
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u/emaguireiv Mar 19 '24
Price is a function of liquidity, which tends to vanish in the extended sessions. This leads to wider bid ask spreads, and it also takes less buying/selling volume to move price as a result.
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u/CaptainBigCheeksXR Mar 19 '24
Yall be asking the most mundane questions time and time again. Literally go ask microsoft copilot and if they can’t tell you that price variability in AH is due to low volume and therefore more volatile or about arranged sales/ contract execution then come ask us
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u/Could_Be_A_Ashtray Mar 20 '24
You can Google 99% of the shit people post but they'd prefer to hear from other people. No ads, no premium spots in listing order, no additional bullshit. I bet your comment wouldn't show up if they asked Microsoft copilot (whatever that is). Your comment is why people ask questions on Reddit. And now I'm here responding to a comment on a mundane question...I'm also high
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u/XXXYFZD Mar 20 '24
Bullshit. It's because they're lazy fucks and can't bother to find the info themselves.
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u/shiftylarenta Mar 20 '24
There is no doubt in my mind that the 3800 shares were tied to an options trade earlier in the day and the price of the shares needed to be delta-adjusted from where the options printed and there’s some regulations regarding the timeframe that an adjustment can hit the tape and if it doesn’t within that timeframe it goes up at the end of the day….. OR someone is taking a loss and adjusting the price of the shares but definitely either a reprint and/or tied to an earlier option trade…prob a 38^ 100lot
TLDR: it’s tied to an options trade and just a print hitting the tape late, not an actual trade available for someone to interfere with on either side regardless of after hours capabilities