1.1.2.5 Meaning of capital inflow and capital outflow (2)

In the article on how prices fluctuate, we mention that traders who influence stock price fluctuations are holding stocks or cash, but the trade orders have not yet been submitted.

The part of the trader who holds the cash will affect the price fluctuations up; and the traders who hold the stock will affect the price fluctuations down.

Let's take a look at the specific situation.

【example】

Let’s take a look at the situation in which the commission has been submitted.

The above picture shows that at the position of “selling first” at 12.39 yuan, there are stock holders who have commissioned 20 lots and are waiting for the transaction.

The cash holder who has not submitted the order, if submitted at this time, is entrusted as follows:

• The commission price is 12.39 yuan, and 15 lots are bought.
• Then the transaction can be completed, involving the amount: 12.39 * 1500 = 18,585 yuan.

For this transaction, it is caused by the cash initiative “active behavior”, so it can be described as: the active purchase of funds is 18,585 yuan.

This meaning, with continuous use and retelling, slowly evolved into "inflow of funds of 18,585 yuan."

In actual strict sense, it should be: Actively buy funds of 18,585 yuan.

Let's take another step:

Actively buy and use funds 18,585 yuan = passively sell to get funds 18,585 yuan

The concept of capital inflows and outflows in market analysis does not mean that the stock market increases or decreases funds, but rather indicates the initiative and passiveness of the willingness to trade.

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