I am just wondering how level2 data can be used to make decisions to buy or sell a particluar stock. I have access to it, but have not really used it much. Are there any websites which could explain its usage and advantages?
UK level 2 is different to Nasdaq level 2 direct access.The UK being light years behind the Nasdaq.
Although i know traders who have done extremely well using UK level 2 to define turning points,their world really explodes when they see and understand how Nasdaq level 2 works.
Lets say we see a nice opening gap on a Nasdaq stock.You may very well like to close it but when do you take your position?and in a fast moving market how are you going to manage it correctly.Can you really feel comfortable when you are not 100% sure how you're trading platform will respond to all this movement and at what price you're system will give you when you want to enter or exit?
Step forward Nasdaq level 2.Traders here can see when the move will start before it appears on a chart and respond to that move quicker than any other trading platform with an array of different orders that will give them the best possible fills.
The direct access part is an art in its self,giving the trader even more control over his position.Lots of people in the UK dont understand its benefits and dismiss it.Because it is so good US day traders use it for scalping,however its benefits are so great that other styles of traders use it for all their entries and exits because it gives them such an edge.
When i demonstrate it to chart readers they stop looking at the chart and their eyes are fixed on the level 2 screen,then i say,hey i thought you were a chart reader? Their response is to smile,because for the first time they now know what real time trading really is.
The best UK site to get info on Nasdaq level 2 direct access trading is right here on trade 2 win,with a course on the subject being offered on the home page.
Nasdaq PowerView-SuperMontage is available for a 14-day free trial. After free trial, $35.00 per month, plus $30.00 a month for exchange fees. Exchange fees will not be charged during trial period.
The NASDAQ PowerView data product is one of the most powerful tools for making better-informed trading decisions. PowerView complements today's NASDAQ Level II service with deeper insight into market participants' trading interest--and can greatly contribute to your efforts of achieving the best execution for your orders.
PowerView combines Level II data with aggregates of the SuperMontage order size at the top 5 price levels. It provides an unparalleled view of market activity, including:
The best bid and ask price from each registered NASDAQ market participant. Aggregate size of all quotes and orders at each of the top five price levels in SuperMontage.
The combination of these two enhanced features allows investors to see not only all of the sponsorship in a stock, but also to view unprecedented depth at and near the prevailing inside.
The best bid and ask price from each registered NASDAQ® market participant.
Aggregate size of all quotes and orders at each of the top five price levels in SuperMontageSM.
The combination of these two features allows users to see not only all of the sponsorship in a stock-but also to view unprecedented depth at and near the prevailing inside.
Depth View provides the aggregate size of all quotes and orders at each of the top five price levels in SuperMontage. DepthViewSM will allow active investors to determine the number of shares they can trade within NASDAQ® without having a substantive price impact. It also provides users with the ability to evaluate liquidity trends at and near the prevailing NASDAQ inside price.
NASDAQ.com Brings NASDAQ PowerView to Investors
New York, N.Y.— The Nasdaq Stock Market, Inc. (NASDAQ®), in partnership with Money.net Incorporated, today began offering NASDAQ PowerView to investors as a fee-based subscription service on NASDAQ.com.
Powered by the SuperMontageSM trading system, NASDAQ PowerView combines the features of NASDAQ Level II and DepthViewSM. The service provides the best bid and ask price from each registered NASDAQ® market participant and aggregate size of all quotes and orders at each of the top five price levels in SuperMontage. The combination of these two features allows users to see not only all of the sponsorship in a stock — but also to view unprecedented depth at and near the prevailing inside.
“NASDAQ PowerView gives investors the opportunity to truly see what Wall Street sees,” stated Adena Friedman, executive vice president of NASDAQ Data Products. “The service can greatly contribute to investor efforts to achieve the best execution for orders — and is in keeping with NASDAQ.com’s commitment to provide investors with the highest quality tools and data to help them make well informed investment decisions.”
SuperMontage is designed to enable investors to get better price information and helps brokers better serve their customers by providing more transparency. SuperMontage exhibits increased speed and depth while enhancing market quality. The interface software for PowerView was developed by Money.net
Money.net Incorporated (www.money.net) is a leading financial subscription and software development company providing retail investors and institutions with professional grade real-time market information and tracking tools, at affordable monthly rates. The company manages one of the largest subscriber bases and networks for real-time market data. For more information about Money.net, call 212-254-2200 or write [email protected].
I use money.net for live US data feed - at about £6 a month - a steal
John Bartlett (beginners workshops with clickevents) :|
I really appreciate the interest in Supermontage etc.However it seems the Nasdaq seem to want to promote level 2 to a much wider retail public.in so doing they have placed large emphasis on depth of market.You are therefore going to get more players taking advantage of this to try and make the retail public see things that aren't there.
I prefer the nasdaq level 2 screen to look like this
Using Nasdaq level 2 is not black and white as most people think.ie they look at a level 2 screen and think oh yes i can see how i would use that.Thats why people that just look at it and think oh yes that all looks straight forward dont get it.
All this depth of market stuff is a real hoot.I couldn't give a *&^%about colours or supermontages depth of view.Dont you think that players out there are going to use that to their own advantage.
Dont you think that a trader or group of traders can buy small amounts of stock at 4c increments in a quiet period and make someones stochastics go up through the 20 band so they think, great were going up so i'll get in.Great pal you've just been spoofed.Were going down.
So it is with the above,what you see is not necessary real.Its understanding whats really going on and then using whats available to your own advantage.
This is my first post and I'd just like to say a huge thankyou to the Regulars who have shared their expertise on these Boards. By doing so it has prevented me launching into implementing my own badly researched and very rudimentary trading strategy.
I have now realised how little I know about the subject and will put all trading plans on hold until I am up to speed. Nasdaq Level 2 looks like the place to be- and until I can start understanding Ax movements with a strong feeling for the personality of a particular stock- I will stay on the sidelines.
Thanks again and congratulations on creating a leading edge website- a truly fantastic piece of work.
Trading takes time ... lots of it. So many people underestimate the time it takes to find the trading style which fits their personality make-up and lifestyle. There's no 'one size fits all' in this game!
Nasdaq L2 may look the place to be, but you may find that it just doesn't suit you - the only way to really know is to try it and see.
Many thanks, Skimbleshanks. Hopefully I will be able to join in with some of the more juicy discussions....but, as you say, it's going to take a long time. Until then, lurking the fora will be the order of the day.
Watching the pro's and semi pro's engage in debates has been invaluable- and meant I will not be trading as a prisoner of some half-baked pre-conceptions, assumptions and guesswork.
The J-curve of learning and practice looks intimidating...but at least this site can help de-mystify a complex but breathtakingly exciting subject. Eventually I will find my niche....until then it's time to approach it with an open mind.