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> If I buy 1,000 shares of IBM on the NYSE , what is the volume
>
> I buy 1,000 shares
> Some one sells me 1,000 shares.
> In this example, is the volume 1,000 or 2,000.
> > NYSE - centralized transaction processing, so each trade has its volume
> > recorded once.
in NYSE, the trade is recorded once - and the total volume count
is increased by 1000 only.
> Last time I checked with Jefferies ( ECN , Los Angeles), If they crossed
the
> trade , they reported it twice.i.e. One dealer, 1000 to buy & 1000 to
sell,
> the volume reported was 2000 (for all exchanges )
> Note: since this is ECN, it could be valid for all markets.
since it is ECN - it is NOT valid in any market.
NYSE - their own system, highly regulated by SEC.
NASD - their own system, but dealer mkt, so loopholes everywhere.
> > NASD - dealer mkt, so if the trade is done thru 2 different dealer, the
> > trade volume is reported twice. if the trade is done thru 1 dealer by
> > crossing between 2 clients/pros, then it will be reported once only.
> > so, the volume does not make any sense in NASD :)
the reason why the NASD volume is not useful is that one can never tell if
that volume divide by 2 will equal to the actual volume.
My system can calc the actual volume by cumulating the trades for
individual stocks in real time. And, for NYSE the total volume for
each stock reported almost always match within 1%. But for something
like MSFT, the difference can be 30 to 40% minimum ...
-Lawrence Chan
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