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Since every trade has a buyer and a seller, I don't understand when people say buyer volume is X or seller volume is Y (if seller volume is different from buyer volume). Where are these numbers coming from?

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Yes, every trade requires both a buyer and a seller.

Buying volume takes place at the ask price and it puts upward pressure on the security when it exceeds selling volume.

Selling volume takes place at the bid price and it puts downward pressure on the security when it exceeds buying volume.

It's the net aggregate volume on one side that moves price in that direction.

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  • Does this count only market orders? If I put in a limit order to buy, I'm effectively trying to buy at the (my own) bid.
    – user12515
    Commented May 1, 2020 at 20:14
  • @Michael - If you place a limit order to buy at your price, you're not causing a trade to occur. You're order is just going on the order book, hoping for a counter party to show up. If you become best bid, a counter party willing to transact at your price (the market) causes the trade. Commented May 1, 2020 at 20:33
  • Yes but at that point when I become best bid which is then hit, I have just bought at the bid, not the ask.
    – user12515
    Commented May 2, 2020 at 7:03
  • OK, you bought at the bid. That's because you placed a limit order and you waited until a counter party showed up, willing to take the other side of the trade at your price via a market order. What does you getting a better price that have to do with the OP's question? Commented May 2, 2020 at 15:16
  • I'm asking if in that case, where I bought at the bid, is that counted as buy volume or sell volume? It seems like you saying it's considered selling volume since it took place at the (my) bid.
    – user12515
    Commented May 2, 2020 at 20:56

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