I am now planning to try a new broker and on their demo platform they are kind enough to display market depth - it seems though that orders are filled without checking the bid/ask quantity? Certainly, the contracts have a "daily volume", but how come an order is filled with zero bid and ask quantity? I know stock exchanges are obliged by nasd, sec etc...for every buyer to have a seller and vice versa - but does anyone guarantee order exeuction in futures? Clearing houses?? It's confusing...
arabianights
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That's because the demo will be filling you in a strange way as it tries to simulate the market.
For futures you indeed need a buyer and a seller...
For futures you indeed need a buyer and a seller...
10x,
But they still can program their demo to check if there is enough market depth and then execute the order? - it's otherwise pretty misleading...it seems.
wackypete2
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Demo accounts have only 2 purposes:
1. Lure you in with easy, quick executions
2. Assist you in figuring out how to try your hand at trading.
Many expert advisor automated systems have been programmed using demos which seem to make untold riches for the user, but fails miserably when trading live.
Also, going along a different line, there are thousands of "hidden" orders which do not show up on market depth/level 2 screens. Since you are new DO NOT rely on the market depth screens to base your trades. The professionals will be looking for you whilst licking their chops. Any market that uses pit trading can also execute market orders "at best price" which may be another pit trader who doesn't use the specialist's limit order book.
Peter
1. Lure you in with easy, quick executions
2. Assist you in figuring out how to try your hand at trading.
Many expert advisor automated systems have been programmed using demos which seem to make untold riches for the user, but fails miserably when trading live.
Also, going along a different line, there are thousands of "hidden" orders which do not show up on market depth/level 2 screens. Since you are new DO NOT rely on the market depth screens to base your trades. The professionals will be looking for you whilst licking their chops. Any market that uses pit trading can also execute market orders "at best price" which may be another pit trader who doesn't use the specialist's limit order book.
Peter
Then again...I'm a programmer myself and I have developed trading systems years ago - surprisingly (or not...) - I made it check to see if there is market depth or not, before taking any meaningful action.
nuff said.
wackypete2
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Good programming! That would have worked better years ago but with today's proliferation of hidden orders and dark pools we only get spoon fed what institutions want us to see. There are still a few good level 2 traders around that have adapted but I'm not one of them. I moved away from using this type of information for the most part in my trading.
By the way, how many years ago were you programming? I never programmed trading systems but I may be able to outdate you! I was using Fortran for non-critical government systems and dabbled in COBOL a bit while TRYING to upgrade a mortgage origination system. That was back in the 80's. Sadly today I may not even recognize a C program if I tripped over it. I now program using metaquotes for my own forex fun and html and javascript for web pages.
All the best,
Peter
Anything can happen on a simulator (and possibly does!). No doubt simulators are not all made equal. For example IB's paper trader is fairly realistic.
This situation is not going to occur in normal operation on major futures contracts. If there is no bid or ask, there is almost certainly a fault at the exchange or your broker or the market is closed.
This situation is not going to occur in normal operation on major futures contracts. If there is no bid or ask, there is almost certainly a fault at the exchange or your broker or the market is closed.
pmccandless
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Yeah simulators are to the advantage of the broker IMO. They give new traders false hope and confidence, but when they switch to live trading its over. The only thing I like simulators for is to test strategy, but I can do that just by looking at my screen. The psychological aspect of trading is the most important part of it and simulators don't help you out one bit with that.
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