What exactly is order flow? Is it time-and-sales information?

Discussion in 'Professional Trading' started by helpme_please, Dec 29, 2017.

  1. Okay
    #11     Dec 30, 2017
  2. Robert Morse

    Robert Morse Sponsor

    Not that simple. Wide spreads can also mean little or no volume. Little or no limit orders on the book to hedge with. Basically more risk, so wider spreads. I'd rather be a MM in options that trade in nickels with volume than options with wide spreads that never trade.

    Getting back to the question, there is order flow. "Good" order flow is money in the bank. "Toxic" overflow can get expensive for those that make markets. There is no good way for a customer to get a look at order flow before it hit the order book on the exchange.
    #12     Dec 30, 2017
  3. Spoofing?
    #13     Dec 30, 2017