buy the bid and sell the offer

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Old Sep 25, 2005, 1:27pm   #1
Joined Nov 2004
buy the bid and sell the offer

What does this mean exactly:

buy the bid and sell the offer
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Old Sep 25, 2005, 1:46pm   #2
 
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Exactly what it says on the tin.

Say the YM future was quoted as 10100 bid and 10101 offer toy could put a limit order in to buy at 10100. Generally you would get a fill at 10100.

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Old Sep 25, 2005, 2:32pm   #3
 
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Assuming there are sufficient sellers at 10100.
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Old Sep 25, 2005, 7:22pm   #4
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Quote:
Originally Posted by Anonymous
Assuming there are sufficient sellers at 10100.
I have traded the YM by buying the bid to go long, just to cover commission. and it dont have to trade through the bid to get a fill. You just in a quew,and sometime you get filled other times you dont, But if it trades through the bid you 100% get filled

Anyway the question to you Volume fans. If you buy at the BID does it show up on Volume that you are a buyer. or seller.

That's the thing when you looking at the order book, you dont real know what everyone is doing when buying or selling. when you get traders buying the BID and for sells Selling the OFFER. If 50% are buying the bid and 50% are buying at market, does it show up in volume what they are doing. Few!! I bet to stop it confusing me now
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Old Sep 27, 2005, 6:50pm   #5
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doesn't it depend on what platform you use , some will show , if the buyers and sellers actually hit the bids and offers and or if they were buying at the bid and selling at the offer ?
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Old Sep 27, 2005, 7:06pm   #6
 
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It does. The actual prices traded could include "last done at xxx Ask" or "yyy Bid".
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Old Sep 27, 2005, 8:42pm   #7
 
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Quote:
Anyway the question to you Volume fans. If you buy at the BID does it show up on Volume that you are a buyer. or seller.
If you buy at the bid then someone else must have have sold to you, perhaps with a market or stop order. It will show up as a transaction completed at the bid price, simple as that.

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If 50% are buying the bid and 50% are buying at market, does it show up in volume what they are doing.
This would mean 50% are passively buying from aggressive sellers willing to sell at the bid price, while the other 50% are aggressive buyers willing to pay the ask from passive sellers. A recipe for a battle, perhaps.
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Old Mar 30, 2010, 8:33pm   #8
Joined Mar 2008
Re: buy the bid and sell the offer

Same topic but slightly different. Can someone explain the following.

When I trade spread bets I buy on the offer and sell the bid! ???
With direct market ... I Buy the bid and sell the ask! and again!
Can you please explain.
Thank you
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Old Mar 30, 2010, 10:25pm   #9
 
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Re: buy the bid and sell the offer

Anyone have any good videos or tutorials on reading/understanding level 2 or the dom?

If the bid is heavy and more people are joining on the bid, this means they are wanting to buy so is this bullish? If they were really that bullish and wanted to buy why didn't they just hit the ask?
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Old Mar 30, 2010, 10:43pm   #10
 
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Re: buy the bid and sell the offer

Maybe they want to buy 61s rather than 62s

In reality reading the DOM and order flow is an art form. I suggest starting out on betfair with an app that will give you a ladder interface to do it with. That's the easiest thing I've ever traded.
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