Hi I hope some one will have patience with me as I cant see how to benefit from level 2. My broker is barclays and provides level 2 free to me as I do enough trades to qualify. I have read up on level 2 on different sites but my own broker seems to offer it but no help on how to use it. If I understand right it gives me a live price and I understand that there is right and left which show the buys and sells and the best price is at the top. I see that there are other prices cuing up below, is that right?
I have watched these cuing up prices which I assume will work their way to the top but this has raised some questions; sometimes they never seem to make it to the top, so surely that means they tell you nothing. Also the prices on the left get smaller and smaller and the ones on the right get bigger and bigger as you look down the columns, so I cannot see how they both work there way up and maintain the spread and in any case the price will only be either going up or down and cannot satisfy both sides so what is going on here?
I realise my questions are probably very basic and maybe silly but I have googled away and can only find info telling you what level 2 shows but not how to use it and what it will do ie I don't know how to interpret the information to help me decide what action to take. I have read and read as people advise as I am self taught and trying to further my basic knowledge.
Is there anyone who has the patience to explain some basics on level 2 to me and maybe give me a few tips or pointers or links to kick me off, as at the moment I am not getting any benefit from it and would like to since i can see it. I am sure I must be able to improve on my current trading with a little bit of knowledge about level 2.
Any help appreciated.
I have watched these cuing up prices which I assume will work their way to the top but this has raised some questions; sometimes they never seem to make it to the top, so surely that means they tell you nothing. Also the prices on the left get smaller and smaller and the ones on the right get bigger and bigger as you look down the columns, so I cannot see how they both work there way up and maintain the spread and in any case the price will only be either going up or down and cannot satisfy both sides so what is going on here?
I realise my questions are probably very basic and maybe silly but I have googled away and can only find info telling you what level 2 shows but not how to use it and what it will do ie I don't know how to interpret the information to help me decide what action to take. I have read and read as people advise as I am self taught and trying to further my basic knowledge.
Is there anyone who has the patience to explain some basics on level 2 to me and maybe give me a few tips or pointers or links to kick me off, as at the moment I am not getting any benefit from it and would like to since i can see it. I am sure I must be able to improve on my current trading with a little bit of knowledge about level 2.
Any help appreciated.