What Does Neutral Mean in M+ Global? Buy, Sell & Neutral Trade Explained
What Is Time & Sales in M+ Global?
Time & Sales (also known as the trade ticker or transaction log) is a chronological list of every stock transaction that occurs in real-time. In the M+ Global app, each transaction row displays four key pieces of information:
- Time — when the transaction occurred
- Price — the stock price at the time of transaction
- Volume — the number of lots traded
- Type — the transaction type: Buy, Sell, or Neutral
The colors displayed help traders quickly identify transaction types — green for Buy, red for Sell, and black/grey for Neutral.
Three Types of Transactions: Buy, Sell & Neutral
Every transaction on Bursa Malaysia is categorized into three types based on who is the aggressor in the transaction:
| Type | Volume Color | Meaning | How It Happens |
|---|---|---|---|
| Buy | Green | Aggressive buyer | Buyer hits the ask price — willing to buy at the seller’s asking price |
| Sell | Red | Aggressive seller | Seller hits the bid price — willing to sell at the buyer’s offered price |
| Neutral | Black / Grey | No aggressor | Transaction occurs outside the order book — price agreed directly between parties |
The key word here is aggression. In normal transactions through the order book, either the buyer or seller “moves first” to match the other party’s price. But in Neutral trades, both parties have already agreed — nobody “hits” the opposing price.
What Is a Direct Business Transaction (DBT)?
According to Bursa Malaysia regulations (Chapter 10), a Direct Business Transaction (DBT) refers to any stock transaction that occurs outside the Automated Trading System (ATS) of Bursa Malaysia, but is still reported within the system.
In simple terms — the buyer and seller have privately agreed on the price and quantity, and the transaction is merely reported to the exchange for record-keeping and settlement purposes.
Why Do DBTs Happen?
DBTs typically occur in these situations:
- Institutional block trades — large institutions (fund managers, investment banks) selling or buying large blocks of shares directly to another party
- Related party transactions — transactions between related parties (e.g., parent and subsidiary companies)
- Portfolio rebalancing — rebalancing portfolios between accounts managed by the same fund manager
- Agreement settlements — transactions that are part of corporate agreements (M&A, takeovers)
- Odd lot transactions — transactions of odd quantities (less than 1 board lot = 100 units)
Two Types of DBT on Bursa Malaysia
Based on the Bursa Malaysia technical guide (BTS2), DBTs are divided into two main types:
1. Crossing Trade
A transaction between two clients from different brokerage firms (Participating Organizations). Example: A CIMB Securities client wants to sell to a Malacca Securities client — they agree directly, and both brokers report the transaction to the exchange.
2. Married Deal
A transaction between two clients within the same brokerage firm. The broker acts as representative for both parties (buyer and seller). Example: Two Malacca Securities clients agree to exchange shareholdings, and the broker processes the transaction internally.
| Aspect | Crossing Trade | Married Deal |
|---|---|---|
| Parties involved | 2 clients, 2 different brokers | 2 clients, 1 same broker |
| Negotiation | Between both brokers | Broker handles both sides |
| Common example | Institution A sells to Institution B | Transfer within fund management accounts |
To learn more about trading on Bursa Malaysia, read our guide on how to buy shares with M+ Global.
Why Neutral Trades Matter for Traders
This is the most critical section — many traders make mistakes because they don’t understand the implications of Neutral trades on their analysis.
1. Neutral Trades Do NOT Reflect Market Sentiment
When you see many Buy (green) transactions in Time & Sales, it indicates buying pressure — many people are willing to pay the ask price to acquire shares. Conversely, many Sell (red) transactions indicate selling pressure.
But Neutral trades? They tell you nothing about market sentiment. They are simply transactions that were pre-agreed between two parties outside the market.
2. Neutral Volume Can Be Misleading
Sometimes you see large volume on Time & Sales — 100 lots, 500 lots — and get excited thinking a “big buyer” has entered. But if it’s marked Neutral, that volume is meaningless in terms of supply and demand. It doesn’t create price pressure.
3. Tape Reading Analysis Can Be Skewed
If you practice tape reading (analyzing transaction flow to gauge market direction), you MUST separate Neutral trades from your analysis. Otherwise, your Buy vs Sell ratio will be distorted and give you a false picture. This is especially important when analyzing trading costs on M+ Global.
Practical Example — Real Transaction Analysis
Let’s look at real transaction examples from M+ Global to understand the difference more clearly:
Group 1: Neutral Trades (11:50:55)
| Time | Price | Volume | Type |
|---|---|---|---|
| 11:50:55 | 1.060 | 1 | Neutral |
| 11:50:55 | 1.060 | 20 | Neutral |
| 11:50:55 | 1.060 | 6 | Neutral |
| 11:50:55 | 1.060 | 9 | Neutral |
Notice — 4 transactions at the exact same time and price (1.060), all Neutral. Total: 36 lots. This is most likely a single block trade split into several parts, or a DBT between related parties. Even though the price of 1.060 appears in green (up from the previous price), it is not buying pressure.
Group 2: Sell Trades (11:49:52)
| Time | Price | Volume | Type |
|---|---|---|---|
| 11:49:52 | 1.060 | 21 | Sell |
| 11:49:52 | 1.060 | 50 | Sell |
| 11:49:52 | 1.060 | 29 | Sell |
Three consecutive Sell transactions at price 1.060. Total: 100 lots. This clearly shows selling pressure — aggressive sellers hitting the bid price to exit. This is meaningful data for your analysis.
Key Takeaway: If you mix Neutral (36 lots) and Sell (100 lots), the total looks large but your interpretation is wrong. Separate Neutral — focus only on Buy vs Sell to gauge true sentiment.
Tips for Volume Analysis Without Neutral Trade Confusion
Here are practical tips to make your Time & Sales analysis more accurate:
1. Exclude Neutral Trades from Volume Analysis
When calculating the Buy vs Sell ratio for a counter, make sure you remove Neutral trades from the calculation. Otherwise, your ratio will be distorted.
2. Watch the Timing Pattern of Neutral Trades
Neutral trades occurring simultaneously at the same time (like the 11:50:55 example above) usually indicate a single large transaction that has been split. This is common for institutional block trades.
3. Monitor Large Neutral Trades as Signals
While Neutral trades don’t reflect sentiment, they can provide important signals:
- Very large Neutral volume (hundreds of thousands of lots) — there may be a major ownership change
- Neutral trade at premium price — a party is willing to pay above market price directly
- Repeated Neutral trades on the same counter — there may be a corporate exercise or agreement in progress
4. Use the Buy:Sell Ratio (excluding Neutral) to Gauge Sentiment
Simple formula:
- Buy Ratio > 60% — Strong buying pressure (bullish signal)
- Sell Ratio > 60% — Strong selling pressure (bearish signal)
- 50/50 balanced — Market is undecided, wait and see
Make sure Neutral is excluded from this calculation.
5. Don’t Assume “Lots of Green = Bullish”
A green price in Time & Sales means the price is up compared to the previous transaction. But if that transaction is marked Neutral, the price increase is not caused by buying pressure. Don’t be misled. For more on buying and selling shares, refer to our guide on how to sell shares on M+ Global.
When Should Neutral Trades Alert You?
While Neutral trades don’t reflect normal market sentiment, there are situations where you should pay attention:
- Unusually large volume — if total Neutral trades in a day exceed the normal volume for that counter, it may indicate a major ownership change. According to CEIC data on Bursa Malaysia DBT turnover, DBT volume can be significant on certain days.
- Before or after corporate announcements — Neutral trades occurring just before major announcements (special dividends, takeovers, mandatory general offers) can sometimes indicate that certain parties already know something.
- Sudden appearance of Neutral trades on a counter that usually has none — this is an anomaly worth investigating. Check announcements on the Bursa Malaysia website for context.
- Neutral trade at a price far from market price — sometimes DBTs occur at significant premiums or discounts. This usually involves special agreements between related parties.
FAQ
Are Neutral trades counted in daily trading volume?
Yes, Neutral trades are included in the daily volume figures displayed on Bursa Malaysia. This means the actual daily volume driven by market forces may be lower than the figure you see if many Neutral trades occurred.
Why is the Neutral trade price shown in green even though it’s not a Buy?
The price color in Time & Sales depends on comparison with the previous transaction’s price — not the transaction type. If the Neutral trade price is higher than the previous transaction, it appears in green. If lower, it appears in red. This color does NOT indicate Buy or Sell.
Can retail investors make Direct Business Transactions?
Theoretically yes, but in practice DBTs are more commonly used by institutions and large investors. Retail investors usually buy and sell through the regular order book on the ATS. You would need to discuss with your broker if you wish to conduct a DBT.
Do Neutral trades affect share prices?
Neutral trades do not affect bid/ask prices in the order book because they occur outside the ATS. However, they do affect the last traded price if they are the most recent transaction, and they also affect daily volume statistics.
How do you filter Neutral trades in M+ Global?
Currently, M+ Global does not provide a specific filter function to separate Neutral trades from Time & Sales. You need to do the calculation manually — look for the “Neutral” label and exclude that volume from your Buy vs Sell analysis.
What’s the difference between an odd lot transaction and a Neutral trade?
Odd lots (transactions of less than 100 units or 1 board lot) can also appear as Neutral because they are processed outside the regular board lot market. However, not all Neutral trades are odd lots — large institutional block trades are also marked Neutral.
Do Neutral trades occur on all markets or only Bursa Malaysia?
The concept of off-market transactions or DBTs exists on virtually all stock exchanges worldwide. However, how they are displayed varies by platform. In M+ Global for Bursa Malaysia, they are labeled “Neutral.” Other platforms may use terms like “Cross,” “Off-market,” or “DBT.”
Why do multiple Neutral trades sometimes appear consecutively at the same time and price?
This usually happens when a single large transaction is split into several smaller parts during the reporting process to the exchange. It is still one DBT deal, just recorded in multiple rows.
Conclusion
Understanding the difference between Buy, Sell, and Neutral in M+ Global’s Time & Sales is a fundamental skill every trader needs to master. Neutral trades are not indicators of market sentiment — they are Direct Business Transactions (DBT) that occur outside the regular order book. Separate them from your volume analysis to get a more accurate picture of the market.
If you’re just starting to learn stock analysis and want to master the basics of investing, here’s your next step.
Open a CDS account to start investing on Bursa Malaysia — register your CDS account here.
Download the free Stock Market Basics ebook to build a strong foundation — get your free ebook here.