Itâs not any part of level 2. Carlin merged it in thatâs why a few of you are mixed up. You can have it merged or you can separate it. Sorry for teasing you Eusdaiki I can see how a new guy can get mixed up. Itâs kind of sad that nobody teaches guys what things are though. Open book is a peak at the specialist orders but itâs manipulated of course and level 2 is actual orders you can hit on exchanges, ECNâs, and market makers.
No problem, I learn something new everyday. Couple of questions though. How is the openbook different than a level 2 book besides the fact that it's match up by the specialist and not by a computer? What advange can come from visualizing it as a separate entity and not simply as a level 2 for the specialist? How will this change next year when the hybrid system comes into effect?
One you can execute now and one can be canceled by you or be filled by the specialist if he wants too print at that price. Open book gives you a feel of buyers and sellers. Using that with charts and the tape helps people enter and exit positions. I donât know the future so I canât tell you how it will change.
So the advantage is that you may get better prices than thorugh the ecns? If the specialist wants to print at that price of course.
Guys, the thread is about tips for a new prop trader, resources, publications, mindset, exposing yourself to various styles, etc. If you want to have an Open Book or strategy discussion then please start another thread in the Strategy Trading forum. Thanks.
remember what I have been saying on these boards, get your deal in writing! This way the firm can not playing games with you!!!!!
Congratulations on your new job. The best publication I know for you is Active Trader. It's a magazine that goes for $100 for two years. SFO (another magazine) is alright also. My 2 cents worth about prop trading: The SEC and IRS are both cracking down on these operations in the wake of the Refco debacle a few years back. The SEC is claiming that if they require a deposit, charge a desk fee or commission etc... you are not really a prop trader - and they are right. A true prop trader is an employee who trades firm capital with no personal risk of loss or expenses. In turn, the IRS is also looking at this - especially for people trading in a prop room (like PFG Capital). When it comes time to do your taxes, get a CPA who knows what a prop trader is and is familiar with the very complicated tax laws involved or you could find yourself in big trouble. As for trading: Don't worry about making money - Work towards making good trades. It sounds like semantics, but it can be the difference between success and failure. Good luck!!