Hello guys, i am in what appears to be an anxiety provoking quest of finding out how many traders are out there in UK. I realize that some are doing FX, some CFD, some are regular, and this complicates the research even more. I have read countless company annual reports where they talk in general terms of international active accounts but never about the specific UK market. What i am truly after is the projected nr of traders that could use Level 2 data, the order book. If everything goes fine, there will be something coming out that will change from that moment the game, the rules, the dynamic of it all, using technology for the benefit of us, the traders. Any help with directions, numbers or contacts will be very much appreciated. Best regards
There are a lot more algos these days than humans analyzing level 2. All HFTs do it, doubt you will be able to guess even closely and verify.
It would be great to have that technology work for us and give us that analysis. But if there would be such a thing, what do you think the outcome would be? Would you subscribe? This is off topic, as i still need to find the number of traders in the UK market not necessarily the ones using Level 2 as that would be probably impossible without a mandatory registration on all the Level 2 providers. But i am sure if we would have the technology mention above there would be more people using it. What do you think?
Looks like the type of question you'd need to be able to answer/estimate when interviewed for finance positions. Just last week Robert posted a question about estimating the number of STOP signs in the world: https://www.elitetrader.com/et/threads/interview-on-monday.335367/ Not sure what clues you have found so far, but here are a few: https://brokernotes.co/forex-traders-map/ : 280,000 UK traders https://www.statista.com/statistics/325326/uk-lse-average-daily-trades/ (number of trades per day in UK) https://www.fca.org.uk/publication/final-notices/interactive-brokers-uk-limited-2018.pdf (IB's UK revenue during specified period: £21 million - compare to global or US)
Thank you very much Guru, this is very helpful as info and as approach for a realistic nr. I wish you all the best
The software needs to start somewhere and it will be in UK. And if you can make money on something, what is the reason to complicate things and not stay steady and consistent ? Still you did not answer my first question,so here is another one to add on ,would you trade also something else than what you already trade now if you would have such an analysis at your finger tips?
Because it sounds like you haven't even started it yet, and only have a vauge idea of what you want to do in your head. If I were to guess, your trying to get that number so you can multiply it by a probability of acquisition and than multiply that by a subscriptions fee....and than take that to an investor to fund development. If that is indeed what you're trying to do....wouldn't it make sense to go to a market that has 6x the population and GDP: The U.S. That will allow you to multiply whatever number your trying to derive here by 6... Are you trying to re-create bookmap...or something similar? There are plenty of level 2 software packages out there. I also might add... If what you're offering is truely game changing, than you should just charge a transaction fee which will make the number of users irrelevant. Just look at market volumes and assume you'll get a fraction of a percent of it.
5000 events worth of modern level 2 data (NQ): 4.2 seconds worth of data. Lots of change...fast. Hard to imagine how people still trade the book manually. You stare at charts like this long enough, you start seeing ghosts. I swear.
Hello IAS_LLC, you are right as i did make it quite obvious. The details are not for here and not for everyone but the result will be shared by all, and that will surprise you. Bookmap is good but does not come close, not even in the same category. And yes, i need the numbers as in any business, and in this industry, at least from my experience, it's hard to get them. I find it only logical to ask for help from this community as they are the ones directly who will benefit in the future, as you will not end up paying for a taste, sound, experience or whatever you would like to transform money into, you will pay to get more of it back.