Hi, The software im with has addons __ ARCA book : __ Totalview : __ BATS book : __ EDGE book : __ NYSE BOOK: Can someone please explain to me what the difference of these are?? Why is total view different from the rest? I thought that if i have the add total view that i would be able to still see bats, edge on my level II someone please help. thanks
total view is nasdaq's order book. they're largely competitive systems, so you can place an order on whichever destination gives you the best rates, prices, etc/etc. just like you can buy dvds from bestbuy/walmart/amazon, except for stocks.
What are Bats book, Edge book, NYSE book, ect If a level II already shows the depth of the market....wouldnt those ecns already be included in the quotes? why is there an additional charge for them, is it something different?
the charges and terminology is used varies a bit from broker to broker. level2 is basically the *ability* to view multiple books at once (software feature), but which books are included (or not) are up to a given broker. Eg if you buy a level2 service from td ameritrade, it's probably not going to include feeds from BATS and EDGE bc they're smaller exchanges (although I'm not certain about this but to give you an idea). To continue the dvd analogy, just because you have a dvd player doesn't mean you get to watch spider man. Level2 is the dvd player. NYSE is spider man (arca is spider man 2 , etc. it's really up to the individual exchange providers to set their own fees for accessing their books, but some of the brokers aggregate popular destinations together into one price for conveience. You see this more in mass market where pro generally you get all the fees seperately and only buy what you need. this is for a consolidated l2 feed, or consolidated book. seperately, sometimes you might still want to view the books invidually, for arbitrage or other purposes.
no. to my knowledge there is no legal requirement that a level2 service has to include every possible market maker for a security. so you and your friend could purchase level2 quotes from two different companies, and if they include different feeds from different market makers in the quote service, you would have slightly different books. this is sort of a mute point though, because for listed equities NYSE+arca has like 90% of the volume.... so if you have these and the nasdaq providers any l2 service is going to be 95% the same on comparison. why do you care?
i use to trade at swift and the level two looked the same as my friends... i was wondering if it was bc his software included the bats, edge, nye books... bc im looking at trading on my own, and i wanted to have the same view of the market...so i need to know what add ons i should pay for. also i wanted to know whether edge,bats, nyse books was something different or something i havent seen before that may improve trading...
well if you want to have the same view you need to buy the same market maker feeds. seperate from that is whether they are going to help you out a lot.... that really depends on all the details of what you do.
so im assuming that my friends software has nyse book, edge book, bats book bc i can see it on his level II so if lets say i only paid for edge book, then my level two quotes wont show the depth of bats and nyse bids/ask?
right you've got the idea. NYSE+arca is going to account for most of the volume though, so unless you are only doing a strategy/style that works on EDGE, you probably would want to have the biggest market makers there at minimum and compromise on the smaller ones.