US level 2 market depth & what market makers actually do
Sep 15, 2010 at 08:38
Full market depth gives you knowledge about top 10 bids and offer prices....this also shows the volume in per million traded
It it like traders sentiment...but their is a catch...😀
There is a common misunderstanding among traders,... suppose 20 traders are in...15 buying and 5 shorting...people think that market will actually go up....its wrong....market makers make money by going against the majority, thats how they make money....
this is basic idea, those who know more about this ...please elaborate, and correct me if i am wrong somewhere😄
It it like traders sentiment...but their is a catch...😀
There is a common misunderstanding among traders,... suppose 20 traders are in...15 buying and 5 shorting...people think that market will actually go up....its wrong....market makers make money by going against the majority, thats how they make money....
this is basic idea, those who know more about this ...please elaborate, and correct me if i am wrong somewhere😄
Uczestnik z Oct 28, 2009
1435 postów
Sep 15, 2010 at 08:44
Market depth isn't showing you what the market makers are doing. It's showing you what the other people in the market are doing. That's how I understand it.
So, if I place a sell stop order below the market I then become a part of that market depth. i.e. I am looking to sell at a price below the current market price. Therefore I would say that market depth does to some extent display the potential sentiment in the market.
But again, this is only my understanding of it, correct me if I'm wrong 😀
So, if I place a sell stop order below the market I then become a part of that market depth. i.e. I am looking to sell at a price below the current market price. Therefore I would say that market depth does to some extent display the potential sentiment in the market.
But again, this is only my understanding of it, correct me if I'm wrong 😀
11:15, restate my assumptions: 1. Mathematics is the language of nature. 2. Everything around us can be represented and understood through numbers. 3. If you graph these numbers, patterns emerge. Therefore: There are patterns everywhere in nature.
Sep 15, 2010 at 09:01
suppose this is the bid/ask price for eur usd.... ( 1.30060/1.30054 ) how is spread made out of this?...
what i think is attracting a seller at new bid price or attracting a buyer at ask price makes the spread...if marker maker makes a new bid at 1.30070 then thats the best bid and he just need to attract a seller to this and he made the spread...am I right?
vice versa for buyers
what i think is attracting a seller at new bid price or attracting a buyer at ask price makes the spread...if marker maker makes a new bid at 1.30070 then thats the best bid and he just need to attract a seller to this and he made the spread...am I right?
vice versa for buyers
Uczestnik z Oct 28, 2009
1435 postów
Sep 15, 2010 at 09:18
Bid Price
The bid price represents the highest priced buy order that is currently available for the market (i.e. the highest price that a trader is willing to pay to go long). The bid price is the same as the highest priced limit order on the buying side of the order book (the level 2 market data).
The bid price is the price that is received whenever a trader places a market sell order (i.e. a market order to go short). The reason for this is that a market sell order is always filled at the best available price, and for a sell order, the best available price is the highest buy order.
Ask Price
The ask price represents the lowest priced sell order that is currently available for the market (i.e. the lowest price that a trader is willing to pay to go short). The ask price is the same as the lowest priced limit order on the selling side of the order book (the level 2 market data).
The ask price is the price that is received whenever a trader places a market buy order (i.e. a market order to go long). The reason for this is that a market buy order is always filled at the best available price, and for a buy order, the best available price is the lowest sell order.
The bid price represents the highest priced buy order that is currently available for the market (i.e. the highest price that a trader is willing to pay to go long). The bid price is the same as the highest priced limit order on the buying side of the order book (the level 2 market data).
The bid price is the price that is received whenever a trader places a market sell order (i.e. a market order to go short). The reason for this is that a market sell order is always filled at the best available price, and for a sell order, the best available price is the highest buy order.
Ask Price
The ask price represents the lowest priced sell order that is currently available for the market (i.e. the lowest price that a trader is willing to pay to go short). The ask price is the same as the lowest priced limit order on the selling side of the order book (the level 2 market data).
The ask price is the price that is received whenever a trader places a market buy order (i.e. a market order to go long). The reason for this is that a market buy order is always filled at the best available price, and for a buy order, the best available price is the lowest sell order.
11:15, restate my assumptions: 1. Mathematics is the language of nature. 2. Everything around us can be represented and understood through numbers. 3. If you graph these numbers, patterns emerge. Therefore: There are patterns everywhere in nature.
Uczestnik z Oct 28, 2009
1435 postów
Sep 15, 2010 at 09:30
11:15, restate my assumptions: 1. Mathematics is the language of nature. 2. Everything around us can be represented and understood through numbers. 3. If you graph these numbers, patterns emerge. Therefore: There are patterns everywhere in nature.
forex_trader_7
Uczestnik z Aug 01, 2009
941 postów
Sep 15, 2010 at 09:47
(edytowane Sep 15, 2010 at 09:53)
A Market maker doesn't put the orders through to market. He settles the clients against each other and only hedges in the real market when his book becomes unbalanced. The spread is fictitious.
The metatrader bucket shops anyway in the FX context.
ECN's it goes though to market, so no market making.
AMM - you're asking what a steering wheel does moments before you drive a bus with 120 people in it?
The metatrader bucket shops anyway in the FX context.
ECN's it goes though to market, so no market making.
AMM - you're asking what a steering wheel does moments before you drive a bus with 120 people in it?
forex_trader_7
Uczestnik z Aug 01, 2009
941 postów
Sep 15, 2010 at 10:04
(edytowane Sep 15, 2010 at 10:06)
I'd also like to point out that by looks of it ECN's, which I believe to be tapping into what they call 'dark pools' are a direct response the what's happening in terms of HFT trading on wall street.
Remember 80% of the volume on the NYSE is rumored to be HFT trading between themselves. Crash waiting to happen if I ever saw one coming. Already had inexplicable 'flash crash' which no one has managed to explain yet.
People are rapidly moving away from those markets as they are no longer seen as fair. I would expect were in for interesting times going forward...
Remember 80% of the volume on the NYSE is rumored to be HFT trading between themselves. Crash waiting to happen if I ever saw one coming. Already had inexplicable 'flash crash' which no one has managed to explain yet.
People are rapidly moving away from those markets as they are no longer seen as fair. I would expect were in for interesting times going forward...
forex_trader_7
Uczestnik z Aug 01, 2009
941 postów
Sep 15, 2010 at 10:11
(edytowane Sep 15, 2010 at 10:15)
To busy for casual chats. But if you're going to be managing money for clients you should know this stuff already. It's going to have huge impact going forward.
forex_trader_7
Uczestnik z Aug 01, 2009
941 postów
Sep 15, 2010 at 12:39
(edytowane Sep 15, 2010 at 12:43)
And I'd also like to point out that you're using a logo you're not entitled to use. You're representing yourself as being from Alpari. From your question it is evident you are not. I'm sure if anyone pointed that out to Alpari you'll get your posterior thoroughly kicked.
They have all your details after all, they know where you live....
They have all your details after all, they know where you live....
Uczestnik z Oct 28, 2009
1435 postów
Sep 15, 2010 at 12:44
I think I'm going to set up a user called George Soros and get his picture up.
Now THAT would generate some business
😈
Now THAT would generate some business
😈
11:15, restate my assumptions: 1. Mathematics is the language of nature. 2. Everything around us can be represented and understood through numbers. 3. If you graph these numbers, patterns emerge. Therefore: There are patterns everywhere in nature.
forex_trader_7
Uczestnik z Aug 01, 2009
941 postów
Sep 15, 2010 at 12:48
(edytowane Sep 15, 2010 at 12:49)
Or get a hitman on your six, I'm sure he has a few enemies, he has a habit of raiding countries...that doesn't make to many friends.
forex_trader_7
Uczestnik z Aug 01, 2009
941 postów
Sep 15, 2010 at 17:49
(edytowane Sep 15, 2010 at 17:51)
I don't quite buy that story...
We could always bump of an e-mail to Alpari and see what happens? Or would that not be required?
We could always bump of an e-mail to Alpari and see what happens? Or would that not be required?
forex_trader_7
Uczestnik z Aug 01, 2009
941 postów
Sep 15, 2010 at 17:59
I'm not calling you a faker yet, but you definitely knew what you were doing when you used Alpari's logo. No one is that stupid.
So don't pull the 'they said' thing...
So don't pull the 'they said' thing...
