Quote:
Originally Posted by CASe333
So they provided a report saying they weren't meeting earnings and immediately there was a sell-off within 5min. But why did it almost immediately drop to the low? I'm looking at after hr trades and price dropped almost immediately. Why wouldn't it drop more incrementally with time? Even a volatile stock like TSLA doesn't move like this.
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It’s because the sellers cut their asks quickly to get out of the shares. If they really want out, they can do that or sell at market and get the shares sold. Depending on your system, you can see the trades lined up, so you can make sure to get an order filled by cutting the price. It will bottom though, because buyers will come in and take shares at a particular price that they think is a good deal.
Basically, you’re seeing the price discovery mechanism happen in real time and it happens fast.