What is price tension?
1 answersQuestion asked ( August 19, 2009 , Shopping / Finance )
Is price tension the same as a broker being irritated with stock prices constantly changing? I’m not a finance person. So i wouldn’t know. I was just trying to figure the best of what i could from the term “price tension”.
Answers to : price...
Answer
Price tension refers to the volatility of a given stock. The seller of any stock tries to maximize his selling price, while the buyer tries to buy the stock at the least / best possible price. This phenomenon is what is referred to as Price tension. When price tension is higher, the greater is the difference between ask and bid price, thereby making the spread larger. The price tension phenomenon also holds a direct impact on the number of stocks that may be traded for a particular script.
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