I think mbondy and a few other posters place orders resting bellow the bid and ask looking to catch a spike that clears out the first level, but I am not sure about this. Many savvy traders no longer add liquidity by sitting on the bid or offer because they believe algos too often step aside and allow a fill when the price will go against them but step in front of them by a fraction of a penny to "steal away" an order if this looks like a good move. To add insult to injury, if an algo takes an order away from you by stepping in front of you because the fill looks good, the algo will simply lean on your order for protection and sell you the stock if things start looking not so hot for the algo's position. _____ Hoping mbondy and others comment!
Currently das trader, for lack of a better option. If I lived in the usa, I would use takion or lightspeed.
Yes I am generally always posting out of the nbbo but not for the reason you cited nor am I right above or below it. I add liquidity because it is not economic not to.
When you place an order levels outside the bid and offer do you pull the order if price drifts to the nbbo, or close? Meaning, are you looking for large orders that clear levels to spike into you?
I'm sorry but I don't really understand either of your questions. Could you rephrase them? How can price 'drift to the nbbo'?