What Is Auction Market Theory?

By Author: vtrender
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The market theory or auction market theory that all about the stock trades. According to the theory, there are two types of people, one is the buyer one and another one is the seller one. This is very interesting According to the theory. The seller always tries to sell their stocks at a higher price. Once they purchased stocks from the buyer then he decided to sell those stocks more than he bought. The good thing about this theory is the opposite he or she has to buy some stocks and sell this at a high price. That all thing is to depend upon the profit. In the book of economic the auction theory is applied. And that is in the equilibrium of economic all depends on that stock.

In this theory some members participate that are only two, one is the buyer one and another one is the seller one. This is only for the new candidate who joined recently. The important thing about this theory, that meeting is conducted in the afternoon every day. The theory is all about the framework. This theory is very popular in the stock market. That all thing like the ...
... mechanism. All of the stockholder who holds their stocks from many times, when they get the right time that time they sell that stocks. They sell their stocks. The world largest market theory is the New York market theory.

How many types of Auction?
In a world there are four types of Auction, which all are stabilised by the manor auction, that is the ascending bid and another one is descending-bid, the third one is the sealed bid, or the last one or the fourth one is the sealed bid auction. In the market of the auction, the new york market has multiple dealers, to buy the shares. That all happened when that stock owners sell their stocks. But some of the problems are not delivered at the right time in the right place. All the market run by some theory, and this one run by the auction market theory. This theory is like the golden thing for that stockers. All the stockers should have known about this theory. If anyhow some dealers don't know about this theory, then in future he might be in trouble. Because this theory is the only thing if you know about this theory then you can easily sell the stocks to the buyers.

In the market theory, there are many types of strategies and market profile Trading is one of them. This strategy only accepts because by this strategy you get a lot of profit. But deep down and in the last we all know that if you want to make a profit then you should have good knowledge about this market theory. Before invest in the stock market, you should have an inquiry about that stocks. After that, you can invest. Before investment, you have to check all things carefully. In the world, of trading, if you are new there, then you have to learn many things. The all-new one should have known these things which are, for trading the only thing is required which is knowledge. If you have good knowledge of trading then you can make a lot of profit.

Why this type of theory is required in trading?
The freshers of this field should be started from the low one, then go for the big one. If you are new there and you go for the big one first then you might be in trouble. And you have to face a huge loss. You always should avoid penny stocks. In trading you have to remember many things, firstly you have to keep in mind that thing which is the looses cut by the limited order.

The strategy of the trading that is all market and there relative that is the small scale of the production. That strategy meany in that all areas buyer and suppliers in the under consideration. They have to region. There is a lot of ways where you can develop your strategies. The first thing is you have to some idea about the market. Then you have to check the correct balance, current stock, after all of that you have to be e ready all time to sell your products. The good or excellent time for trade is the day. Because at night the all the experience trader are trading that's why that time is very difficult for trading.

Summary
In the market, there are many types of strategies. And all have their importance in their field. But the very important strategies is the nifty future strategies. That strategies also divided into groups. This means that all are divided into two types. That type is when you invest somewhere there is two way one is for the short period and another one is for the long period.