Question about market depth

johnymm · Apr 7, 2010

I want to be sure that i'm getting the market depth, correctly:

If there is a stock/futures with the following market depth:

bid: $8
ask: $10.
bid orders volume: 1
ask orders volume: 1

Can I buy this 1 ask order and then sell to this 1 bid order?
Of course I will lose $2 from the spread...

Also: What's the chance that when I buy the 1 ask order - then my buying won't increase the spread even futher? It should be always that when there are many buyers - price goes up...but what guarantees that the "bid part" of the spread won't go down?

10x alot in advance.

The Expert · Apr 9, 2010

johnymm said:
I want to be sure that i'm getting the market depth, correctly:

If there is a stock/futures with the following market depth:

bid: $8
ask: $10.
bid orders volume: 1
ask orders volume: 1

Can I buy this 1 ask order and then sell to this 1 bid order?
Of course I will lose $2 from the spread...

Also: What's the chance that when I buy the 1 ask order - then my buying won't increase the spread even futher? It should be always that when there are many buyers - price goes up...but what guarantees that the "bid part" of the spread won't go down?

10x alot in advance.

JM, retail traders are but a drop in the ocean, so, if you buy or sell 1000 it will still not make one little bit of difference.

Just so you are aware, what you see on the screen is not the only bid/ask what is in the market, for, there are even bid/asks that you can not see:whistling

Do yourself a favor and forget about trivial things, for, the real money is to be made when you can SEE what others are really doing

U R WLCM:cheesy:

Question about market depth

johnymm

Junior member

The Expert

Established member

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