What are "Level 2" quotes? Trade on them?

Discussion in 'Trading' started by Saltynuts, Feb 17, 2018.

  1. Saltynuts

    Saltynuts

    What are they? Where you can see all the offers, not just the highest bid and lowest ask? Can I get them at interactivebrokers? And can one trade profitably using the simple system of watching them, and when a ton of orders pop up on sell side or buy side, act as if that was going to be downward/upward pressure, and sell/buy accordingly? I'm sure its not that simple, just curious how they might be used.

    Thanks!
     
  2. RRY16

    RRY16

    Please go away and stop wasting peoples time.
     
    lcranston likes this.
  3. nickynoes

    nickynoes

    Google those questions, try this and find out yourself, and it very well could be.
     
  4. Yes, yes, and it's not that simple.

    At IB they're charged for on a per exchange basis.

    And there's so much spoofing and iceberg orders and hidden orders that it's tough to infer anything from its face value. I use it for a confirmation of my belief of likely price movement, or (more importantly) as an early "something's wrong" indicator. It provides insight into liquidity...how you use that is up to you. And there have been doctoral theses done about how to use it.
     
    Last edited: Feb 17, 2018
    kentary and Xela like this.
  5. zdreg

    zdreg

    anybody ever get a job from a doctoral thesis on this subject?:D
     
    beerntrading likes this.
  6. speedo

    speedo

    Lots of games played on L2...hard to trust what you see.
     
    vanzandt likes this.
  7. Level 2 quotes is The Matrix...that's how Japanese traders CIS and BNF make their millions,
    [​IMG]

    I'm a highly visual, right-brained, guy...I stare at a chart image picture to glean my wisdom and market insight that is the past, present, and future unfolding dynamically, malleable patience and assumptions :confused:, :cool:
     
    Last edited: Feb 17, 2018
  8. volpri

    volpri

    Just ask soeswasbetter. He oughta know with a name like his....Lol