Nyse Open Book ?

LOL, okay.

 

Thread author,

Please excuse the interruption.

Nitro can you clean your inbox. I am trying to send a PM to you. Your box is always full! Do you leave it that way so that people think your a popular guy?

Michael B.

 

Nitro, with all due respect. The above definition is a "locked market".

Good trading to you.

 

indahook,

yeah, that definition is also used. But believe me, crossed is used as a term for locked markets as well.

The term I use for what you are suggesting is inverted, or some call it arbs.

nitro

 

Ugh,

Please try again. Believe me, if it were up to me, I would give Baron an 80GB hard drive to dedicate to me so that I don't have to clean my inbox and sent items.

nitro

 

Sent...Thanks

You must really consider paying me for the opportunity to give me free advice.

Michael B.

P.S. See you in chat on Monday.

 

NYSE OB is routinely locked/crossed as limit orders that are marketable arrive. When the spec matches them up, they go away.

Some vendors incorrectly remove the crossing orders from their display. IB, for example, used to do this, but said they were changing it. I don't know if they did. It's pretty useful information.

 

Heh,

I have never noticed it. I will have to look harder.

nitro

 

A crossed market on the NYOB is a limit order outside of the inside quote. The order is quickly filled at the inside or it then becomes an uncrossed order in the book.

The NYOB is extremely useful if you know how to use it. If not properly understood it can actually hurt your trading. If you see a large Bid step up, you must wait to see how the stock reacts to it. If the specialist puts the bid as the inside quote, then you may have a good potential long. If this large order gets filled quickly then this tells you that there is even a larger seller behind the seems. One that isn't showing their hand. It's not what comes up in the book, its how the stock reacts to it that makes the book useful. The NYOB is just another tool that can be used to become a better tape reader..

 

It's like poker. They don't show their hand unless they want people to see it.

Usually your hand is hidden, but sometimes your hand shows, either by accident, or purposely.

Learning to read the tape often gives you the ability to see the hidden hand.